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Who Made Who – An Empirical Analysis of Competitive Balance in European Soccer Leagues

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  • Lief Brandes

    ()
    (University of Zurich)

  • Egon Franck

    (University of Zurich)

Abstract

There is an on-going debate about the optimal degree of team solidarity in professional European soccer leagues. Support for a high degree of team solidarity has been coming from the theory of competitive balance, which states that diminished uncertainty of outcome will result in reduced attendance demand. Based on seasonal average match attendance and different measures of competitive balance for several soccer leagues in Europe, this paper presents empirical evidence from vector autoregressive models and Granger causality tests. The results clearly show the existence of heterogeneity across different leagues and for tiers within a league.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume33/V33N3P379_403.pdf
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Bibliographic Info

Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 33 (2007)
Issue (Month): 3 (Summer)
Pages: 379-403

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Handle: RePEc:eej:eeconj:v:33:y:2007:i:3:p:379-403

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References

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  1. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
  2. S. M. Dobson & J. A. Goddard, 1998. "Performance and revenue in professional league football: evidence from Granger causality tests," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1641-1651.
  3. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
  4. Haan, Marco & Koning, Ruud H. & Witteloostuijn, Arjen van, 2002. "Market forces in European soccer," Research Report 02F18, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  5. Helmut Dietl & Egon Franck & Patrick, 2003. "Überinvestitionsprobleme in einer Sportliga," Working Papers 0020, University of Zurich, Institute for Strategy and Business Economics (ISU).
  6. Czarnitzki, Dirk & Stadtmann, Georg, 1999. "Uncertainty of outcome versus reputation: empirical evidence for the First German Football Division," ZEW Discussion Papers 99-46, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
  8. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  9. Stephen Hall & Stefan Szymanski & Andrew S. Zimbalist, 2002. "Testing the Causality between Team Performance and Payroll: The Cases of Major League Baseball and English Soccer," Journal of Sports Economics, , vol. 3(2), pages 149-168, May.
  10. 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.
  11. Scully, Gerald W., 1995. "The Market Structure of Sports," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226743950, April.
  12. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-19, Nov.-Dec..
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Cited by:
  1. P Dorian Owen, 2010. "Measuring Parity in Sports Leagues with Draws: Further Comments," NCER Working Paper Series 59, National Centre for Econometric Research.
  2. P. Dorian Owen, 2013. "Measurement of Competitive Balance and Uncertainty of Outcome," Working Papers 1311, University of Otago, Department of Economics, revised Aug 2013.
  3. Raul Caruso & Marco Di Domizio, 2012. "Hooliganism and demand for football in Italy. Evidence for the period 1962-2011," DISCE - Quaderni dell'Istituto di Politica Economica ispe0062, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  4. Raul Caruso, 2008. "Il calcio tra mercato, relazioni e coercizione," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 4(1), pages 71-88, Aprile.

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