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I interpret market size as the number of people who live in your team's metropolitan area. So if the game works like real life, there would nothing you could do to increase the population of your team's area. I remember once in an earlier version getting a message saying my team's market size had increased, but I have no idea why. Maybe my team was so bad the fans stayed home and enjoyed other activities and the city experienced a baby boom.
Of course, in real life, the teams that win more and get more media coverage, sell more merchandise around the country. I sure there are a lot of people wearing Yankee hats who have never been within 1,000 miles of New York. However, I doubt that the game takes that into account.
Your question also made me wonder if there is anything you can do to affect team loyalty? I don't think I've ever seen it change.
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