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A Spatial Cross-Sectional Analysis of the Elasticity of Demand for Soccer

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  • Forrest, David
  • Simmons, Robert
  • Feehan, Patrick

Abstract

Several studies estimate the demand for watching English professional football (soccer) as highly inelastic, a puzzling result given that clubs appear to possess a degree of monopoly power. We discuss weaknesses in earlier studies and offer an alternative method of assessing elasticity based on travel costs of spectators living different distances from the grounds. We find that elasticity varies across the 20 senior clubs for which data were available but in almost every case demand is more elastic than reported in the existing literature and pricing policy appears therefore to be more orientated towards profit maximisation than previously thought. Copyright 2002 by Scottish Economic Society.

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 49 (2002)
Issue (Month): 3 (August)
Pages: 336-55

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Handle: RePEc:bla:scotjp:v:49:y:2002:i:3:p:336-55

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Cited by:
  1. Babatunde Buraimo & David Forrest & Robert Simmons, 2007. "Freedom of Entry, Market Size, and Competitive Outcome: Evidence from English Soccer," Southern Economic Journal, Southern Economic Association, vol. 74(1), pages 204-213, July.
  2. Leif Brandes & Egon Franck & Stephan Nuesch, 2006. "Local Heroes and Superstars - An Empirical Analysis of Star Attraction in German Soccer," Working Papers 0046, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2007.
  3. Caruso Raul & Di Domizio Marco, 2013. "Hooliganism and demand for football in Italy: Attendance and counter-violence policy evaluation," wp.comunite 0101, Department of Communication, University of Teramo.
  4. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français ?," Post-Print halshs-00639300, HAL.
  5. Partosch, Christoph, 2014. "Der Einfluss der Champions League auf die Wettbewerbsposition einzelner Vereine und die Competitive Balance der Bundesliga," Discussion Papers of the Institute for Organisational Economics 3/2014, University of Münster, Institute for Organisational Economics.
  6. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
  7. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français," Documents de travail du Centre d'Economie de la Sorbonne 11048, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  8. Ferda HALICIOGLU, 2005. "Forecasting the Professional Team Sporting Events: Evidence from Euro 2000 and 2004 Football Tournaments," Industrial Organization 0508001, EconWPA.
  9. Leif Brandes & Egon Franck & Philipp Theiler, 2013. "The group size and loyalty of football fans: a two-stage estimation procedure to compare customer potentials across teams," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(2), pages 347-369, 02.
  10. B Buraimo & D Forrest & R Simmons, 2006. "Robust estimates of the impact of broadcasting on match attendance in football," Working Papers 574575, Lancaster University Management School, Economics Department.
  11. Georg Stadtmann, 2006. "Frequent News and Pure Signals: The Case of a Publicly Traded Football Club," Working Papers 0603, International Association of Sports Economists & North American Association of Sports Economists.
  12. Ferda Halicioglu, 2005. "Can We Predict The Outcome Of The International Football Tournaments : The Case Of Euro 2000?," Microeconomics 0503008, EconWPA.
  13. Egon Franck & Stephan Nüesch, 2007. "The Role of Patriotism in Explaining TV Audience of National Team Games - Evidence from Four International Tournaments," Working Papers 0065, University of Zurich, Institute for Strategy and Business Economics (ISU).
  14. Matt Pinnuck & Brad Potter, 2004. "The Financial Performance of AFL Football Clubs," Accounting, Finance, Financial Planning and Insurance Series 2004_15, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.

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