Answer to Question #49825 in Economics of Enterprise for Chris-Obi

Question

Why are stadiums largely built on the edge of town or in the suburbs rather than in the center of town? Hint: Refer to the hoteling model.

Answer 1

In North America, multi-purpose stadiums were built primarily during the 1960s and 1970s as shared home stadiums for Major League Baseball and National Football League or Canadian Football League teams. Some stadiums were renovated to allow multi-purpose configurations during the 1980s. This type of stadium is associated with an era of suburbanization, in which many sports teams followed their fans out of large cities into areas with cheaper, plentiful land. They were usually built near highways and had large parking lots but not often connected to public transit.