Estimating the value of national sporting success
AbstractThe sporting success of athletes and national teams is associated with a feel-good-factor among the population. These positive social effects can be regarded as public goods that entail a certain value for the population. The value of public or non-market goods can be estimated using the contingent valuation method (CVM). A theoretical model is developed based on the consumption capital theory. This model explains the willingness-to-pay (WTP) for winning the 2010 Football World Cup as a function of sport-related and football-specific consumption capital as well as intangible and socio-economic factors. Within a survey of German citizens (n=3049), the value of winning the 2010 Football World Cup is assessed using CVM. The model is tested using regression analyses to identify the significant determinants of WTP. The results reveal half of the respondents stated a WTP that amounted to €26 on average. The findings of a mixed-effects logistic as well as an alternative Tobit regression model show that intangible factors such as identification with the country and with the national team as well as individual and national importance of a good result significantly influence individuals’ WTP. Based on the findings of this study, it can be recommended that policy makers invest in national teams and athletes as national sporting success can generate a feel-good-factor among the population and make people happier. Additionally, it can impact on peoples’ perceptions and expectations about current and future economic situations which in turn determine macro-economic outcomes. Moreover, such estimations could be integrated into cost-benefit terms that are carried out for sport events.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Sport Management Review.
Volume (Year): 15 (2012)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jose M. Grisolia & Ken Willis, 2011. "Heterogeneity In Willingness‐To‐Pay For Theatre Productions: Individual Specific Willingness‐To‐Pay Estimates For Theatres, Shows And Their Attributes," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(3), pages 378-395, 07.
- John A. List, 2001.
"Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1498-1507, December.
- John List, 2001. "Do explicit warnings eliminate the hypothetical bias in elicitation procedures? Evidence from field auctions for sportscards," Framed Field Experiments 00163, The Field Experiments Website.
- Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2007.
"Willingness To Pay For Amateur Sport And Recreation Programs,"
Contemporary Economic Policy,
Western Economic Association International, vol. 25(4), pages 553-564, October.
- Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2006. "Willingness to Pay for Amateur Sport and Recreation Programs," Working Papers 06-14, Department of Economics, Appalachian State University.
- Matsusaka, John G & Sbordone, Argia M, 1995.
"Consumer Confidence and Economic Fluctuations,"
Western Economic Association International, vol. 33(2), pages 296-318, April.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
- J. C. H. Jones & William D. Walsh, 1988. "Salary determination in the National Hockey League: The effects of skills, franchise characteristics, and discrimination," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(4), pages 592-604, July.
- Barros, Carlos Pestana & Proença, Isabel & Vieira, José A. Cabral, 2005.
"Low-Wage Employment in Portugal: A Mixed Logit Approach,"
IZA Discussion Papers
1667, Institute for the Study of Labor (IZA).
- Carlos Barros & Isabel Proenca & Jose Cabral Vieira, 2005. "Low-wage employment in Portugal: a mixed logit approach," Labor and Demography 0508001, EconWPA.
- Kalle Seip & Jon Strand, 1992.
"Willingness to pay for environmental goods in Norway: A contingent valuation study with real payment,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 2(1), pages 91-106, January.
- Seip, K. & Strand, J., 1990. "Willingness To Pay For Environmental Goods In Norway: A Contingent Valuation Study With Real Payment," Memorandum 12/1990, Oslo University, Department of Economics.
- David Forrest, 2003. "Sport and Gambling," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 598-611, Winter.
- Arne Risa Hole, 2007. "Fitting mixed logit models by using maximum simulated likelihood," Stata Journal, StataCorp LP, vol. 7(3), pages 388-401, September.
- Bernd Frick & Joachim Prinz, 2007. "Pay and Performance in Professional Road Racing: The Case of City Marathons," International Journal of Sport Finance, Fitness Information Technology, vol. 2(1), pages 25-35, February.
- Barton, David N., 2002. "The transferability of benefit transfer: contingent valuation of water quality improvements in Costa Rica," Ecological Economics, Elsevier, vol. 42(1-2), pages 147-164, August.
- Peter Haan & Arne Uhlendorff, 2006.
"Estimation of multinomial logit models with unobserved heterogeneity using maximum simulated likelihood,"
StataCorp LP, vol. 6(2), pages 229-245, June.
- Peter Haan & Arne Uhlendorff, 2006. "Estimation of Multinomial Logit Models with Unobserved Heterogeneity Using Maximum Simulated Likelihood," Discussion Papers of DIW Berlin 573, DIW Berlin, German Institute for Economic Research.
- Claudio Lucifora & Rob Simmons, 2003. "Superstar Effects in Sport: Evidence From Italian Soccer," Journal of Sports Economics, , vol. 4(1), pages 35-55, February.
- Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2000.
"“The Value of Public Goods Generated by a Major League Sports Team: The CVM Approach,”,"
0014, East Carolina University, Department of Economics.
- Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2001. "The Value of Public Goods Generated by a Major League Sports Team: The CVM Approach," Journal of Sports Economics, , vol. 2(1), pages 6-21, February.
- Pamela Wicker, 2011. "Willingness-to-Pay in Non-Profit Sports Clubs," International Journal of Sport Finance, Fitness Information Technology, vol. 6(2), pages 155-169, May.
- Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
- Blomquist, Glenn C. & Whitehead, John C., 1998. "Resource quality information and validity of willingness to pay in contingent valuation," Resource and Energy Economics, Elsevier, vol. 20(2), pages 179-196, June.
- BK. Johnson & JC. Whitehead, 2000. "Value of public goods from sports stadiums: the CVM approach," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 48-58, 01.
- Frick, Bernd & Barros, Carlos Pestana & Prinz, Joachim, 2010. "Analysing head coach dismissals in the German "Bundesliga" with a mixed logit approach," European Journal of Operational Research, Elsevier, vol. 200(1), pages 151-159, January.
- Matthew Walker & Michael J. Mondello, 2007. "Moving Beyond Economic Impact: A Closer Look at the Contingent Valuation Method," International Journal of Sport Finance, Fitness Information Technology, vol. 2(3), pages 149-160, August.
- J. Morgan Jones & Jane T. Landwehr, 1988. "Removing Heterogeneity Bias from Logit Model Estimation," Marketing Science, INFORMS, vol. 7(1), pages 41-59.
- Huhtala, Anni, 2004. "What price recreation in Finland? – A contingent valuation study of non-market benefits of public outdoor recreation areas," MPRA Paper 24602, University Library of Munich, Germany.
- Arne Risa Hole, 2007.
"Modelling Heterogeneity in Patients' Preferences for the Attributes of a General Practitioner Appointment,"
022cherp, Centre for Health Economics, University of York.
- Hole, Arne Risa, 2008. "Modelling heterogeneity in patients' preferences for the attributes of a general practitioner appointment," Journal of Health Economics, Elsevier, vol. 27(4), pages 1078-1094, July.
- Whitehead, John C. & Cherry, Todd L., 2007. "Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches," Resource and Energy Economics, Elsevier, vol. 29(4), pages 247-261, November.
- Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010.
"Induced Civic Pride and Integration,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 72(2), pages 202-220, 04.
- Mary Jo Kealy & John F. Dovidio & Mark L. Rockel, 1988. "Accuracy in Valuation Is a Matter of Degree," Land Economics, University of Wisconsin Press, vol. 64(2), pages 158-171.
- Steffen Rätzel & Joachim Weimann, 2006. "Der Maradona Effekt: Wie viel Wohlfahrt schafft die deutsche Nationalmannschaft?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 257-270, 05.
- Bockstael, N E & McConnell, K E, 1993. "Public Goods as Characteristics of Non-market Commodities," Economic Journal, Royal Economic Society, vol. 103(420), pages 1244-57, September.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Klose, Thomas, 1999. "The contingent valuation method in health care," Health Policy, Elsevier, vol. 47(2), pages 97-123, May.
- Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006. "Seemingly Irrelevant Events Affect Economic Perceptions and Expectations: The FIFA World Cup 2006 as a Natural Experiment," IZA Discussion Papers 2275, Institute for the Study of Labor (IZA).
- J. S. Cramer, 2007. "Robustness of Logit Analysis: Unobserved Heterogeneity and Mis-specified Disturbances," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(4), pages 545-555, 08.
- Wicker, Pamela & Kiefer, Stephanie & Dilger, Alexander, 2013. "The value of sporting success to Germans: Comparing the 2012 UEFA Championships with the 2012 Olympics," Discussion Papers of the Institute for Organisational Economics 11/2013, University of Münster, Institute for Organisational Economics.
- Hallmann, Kirstin & Breuer, Christoph & Kühnreich, Benedikt, 2013. "Happiness, pride and elite sporting success: What population segments gain most from national athletic achievements?," Sport Management Review, Elsevier, vol. 16(2), pages 226-235.
- Pawlowski, Tim & Downward, Paul & Rasciute, Simona, 2014. "Does national pride from international sporting success contribute to well-being? An international investigation," Sport Management Review, Elsevier, vol. 17(2), pages 121-132.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.