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.
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Bibliographic InfoArticle provided by Elsevier in its journal Sport Management Review.
Volume (Year): 15 (2012)
Issue (Month): 2 ()
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