1) Suppose Mayor Strange comes to you and asks you whether or not Montgomery, AL should bid for 2024 Olympics. He says that a group of economic consultants has said it will be a major boon for Montgomery’s economy. What kind of things did they likely claim in their report to the Mayor? What factors did they likely neglect to mention? Is it likely or unlikely that Montgomery would see a major impact? Why or why not?
2) After accepting your recommendation not to pursue the 2024 Olympics (hint, hint), Mayor Strange comes to you with another idea. The Jacksonville Jaguars are considering moving to Montgomery. They have said they will do so if the taxpayers of Montgomery will pay for a large, brand new stadium (in addition to the renovated Cramton Bowl, and the new ASU stadium). Why might Montgomery benefit, and how would we measure that? What sorts of negative consequences might come from the Jags’ relocating to Montgomery (aside from abysmal football)?Why would the benefits to the city likely be overstated? Why are teams like the Jags constantly interested in new stadiums anyway (Hint: think about their revenue function).