NBA Figure 7

Figure 7: Comparing Player Salaries of the Lakers and Clippers, 1990 – 2003 Year League Salary Cap League Avg. Salary per Player Lakers’ Roster Salary Total Clippers’ Roster Salary Total 1990-91 $11.9 M $0.9 M $12.1 M $10.6 M 1991-92 $12.5 M $1.1 M $12.9 M $15.8 M 1992-93 $14.0 M $1.3 M $14.3 M … Continued

NBA Figure 6

Figure 6: Competitive Performance of Los Angeles Lakers, 1980-2005 Performance Metric Number Details Winning Seasons 37 out of 44 seasons NBA Titles 8/25 (33%)* 1980, 1982, 1985, 1987, 1988, 2000, 2001, 2002 League MVP 5/25 (20%)* Kareem Abdul-Jabbar (1980); Magic Johnson (1987, 1989, 1990); Shaquille O’Neal (2000) NBA Finals MVP 8/25 (33%)* Magic Johnson (1980, … Continued

NBA Figure 5

Figure 5: Comparing Substitute Products – the NBA vs. the National Hockey League (NHL), National Football League (NFL), and Major League Baseball (MLB) NBA NHL NFL MLB Average Ticket Cost (2003-04) $44.68 $43.57 $54.75 $19.82 Regular Season Games 1,230 1,230 256 2,430 Average Attendance per Game 17,443 18,751 67,618 41,886 Total Attendees per Season 21,454,890 … Continued

NBA Figure 4

p>Figure 4: NBA Broadcast Rights Fees, 1982 – 2008 Season Cable TV Network TV Station Contract Amount Station Contract Amount 1982-83 to 1983-84 USA/ESPN $11 million/2 yrs CBS $91.9 million/4 yrs 1984-85 to 1985-86 TBS $20 million/2 yrs CBS See above 1986-87 to 1987-88 TBS $25 million/2 yrs CBS $173 million/4 yrs 1988-89 to 1989-90 … Continued

NBA Figure 3

Figure 3: Demographics of Average NBA Fan (Customer) Age: 37% between 18-34 Education: 62% attended or graduated college Income: 48% earn > $50k annually Gender: 59% male, 41% female Racial Distribution: 18% African Am., 15% Hispanic Bought Sporting Goods in past 3 months: 54% Bought Licensed Apparel in past year: 45% Access Internet Regularly: 66% … Continued

NBA Figure 2

Figure 2: Comparison of the Top and Bottom Firms in the NBA, 2003-04 Season Data Team Win-Loss Record No. of Titles since 1980 Average Attendance Home Games Player Expense (millions) Market Size (metro pop in millions) Current Value (millions) Total Revenue (millions) Operating Revenue (millions) Higher-Performers Los Angeles Lakers 56-26 8 18,967 $66 16 $447 … Continued

Does Market Efficiency Trump Behavioral Bias in Finance Decisions?

Does Market Efficiency Trump Behavioral Bias in Finance Decisions?

Once upon a time, two economists were walking together when one of them saw something that caught his attention. “Look,” he exclaimed, “here’s a great research topic!” “Nonsense,” the other one said, “If it were, someone would have written a paper on it by now.” For a long time this attitude governed the view of … Continued