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Suppose That a City in Your State Is Trying to Attract

Question 30

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Suppose that a city in your state is trying to attract a sports tournament,which would entail spending a significant amount of money on marketing of the event and other costs that have no intrinsic value to residents of the city.The city leaders argue that hosting the sports tournament will increase commerce activity around the city because of the visitors who will be in town for the tournament.Consequently,they are lobbying you as the state governor to give them grants,which they say (credibly)is the only way they can afford to host the tournament.For your decision,should it matter whether it is a tournament between in-state teams or national teams? Explain.

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It should indeed matter.To look at this ...

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