IDEAS home Printed from https://ideas.repec.org/p/apl/wpaper/15-06.html
   My bibliography  Save this paper

Public support for hosting the Olympic Summer Games in Germany: The CVM approach

Author

Listed:
  • Pamela Wicker
  • John C. Whitehead
  • Daniel S. Mason
  • Bruce K. Johnson

Abstract

Cities throughout the world continue to weigh the merits of hosting major sport events, including the Olympic Games. These events are considered desirable due to a range of benefits, including economic and/or tourism development. In addition, previous research has shown that hosting the Olympics may confer intangible benefits for cities and their residents. This paper presents the results of a contingent valuation method estimate of the monetary value of intangible benefits to Germans of hosting the Olympic Summer Games. In a nationwide online survey 6,977 respondents were asked if they would support a referendum to host the Games. The survey employed a payment card format containing monthly tax amounts to elicit willingness-to-pay to finance the Games over a five-year-period. In the weighted sample, 72 percent expressed a positive willingness-to-pay. Among those with a positive willingness-to-pay, average willingness-to-pay was €47. The results from grouped data hurdle models showed that various intangible benefits (e.g. pride and happiness in sporting success; increased German prestige) and policy consequentiality had a significant positive effect on willingness-to-pay. The findings have implications for policy makers since they show what population groups are more supportive of hosting the Games. Key Words: Contingent Valuation Method; Willingness-to-pay; Olympic Games; Public goods; Sport event

Suggested Citation

  • Pamela Wicker & John C. Whitehead & Daniel S. Mason & Bruce K. Johnson, 2015. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Working Papers 15-06, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:15-06
    as

    Download full text from publisher

    File URL: http://econ.appstate.edu/RePEc/pdf/wp1506.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Giles Atkinson & Susana Mourato & Stefan Szymanski & Ece Ozdemiroglu, 2008. "Are We Willing to Pay Enough to `Back the Bid'?: Valuing the Intangible Impacts of London's Bid to Host the 2012 Summer Olympic Games," Urban Studies, Urban Studies Journal Limited, vol. 45(2), pages 419-444, February.
    2. 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.
    3. Craig E. Landry & John A. List, 2007. "Using Ex Ante Approaches to Obtain Credible Signals for Value in Contingent Markets: Evidence from the Field," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 420-429.
    4. 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.
    5. Christian A. Vossler & Maurice Doyon & Daniel Rondeau, 2012. "Truth in Consequentiality: Theory and Field Evidence on Discrete Choice Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 145-171, November.
    6. Poe, Gregory L. & Vossler, Christian A., 2009. "Consequentiality and contingent values: an emerging paradigm," MPRA Paper 38864, University Library of Munich, Germany.
    7. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November.
    8. Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
    9. Robert Baade & Robert Baumann & Victor Matheson, 2008. "Slippery Slope? Assessing the Economic Impact of the 2002 Winter Olympic Games in Salt Lake City, Utah," Working Papers 0815, College of the Holy Cross, Department of Economics.
    10. John F. R. Harter, 2015. "Is The Wigwam Worth It? A Contingent Valuation Method Estimate For A Small-City Sports Arena," Contemporary Economic Policy, Western Economic Association International, vol. 33(2), pages 279-284, April.
    11. Richard T. Carson, 2012. "Contingent Valuation: A Practical Alternative When Prices Aren't Available," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 27-42, Fall.
    12. Richard T. Carson & Theodore Groves & John A. List, 2014. "Consequentiality: A Theoretical and Experimental Exploration of a Single Binary Choice," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(1), pages 171-207.
    13. Coates, Dennis & Humphreys, Brad R., 2006. "Proximity benefits and voting on stadium and arena subsidies," Journal of Urban Economics, Elsevier, vol. 59(2), pages 285-299, March.
    14. Brad R. Humphreys & Jane E. Ruseski, 2007. "Participation In Physical Activity And Government Spending On Parks And Recreation," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 538-552, October.
    15. David L. Dickinson & John C. Whitehead, 2015. "Dubious And Dubiouser: Contingent Valuation And The Time Of Day," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 1396-1400, April.
    16. 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, April.
    17. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2011. "Estimating the Value of Medal Success at the 2010 Winter Olympic Games," Working Papers 11-20, Department of Economics, Appalachian State University.
    18. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 343-354.
    19. Pablo Castellanos & Jaume García & José Manuel Sánchez, 2011. "The Willingness to Pay to Keep a Football Club in a City: How Important are the Methodological Issues?," Journal of Sports Economics, , vol. 12(4), pages 464-486, August.
    20. Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2001. "The Value of Public Goods Generated by a Major League Sports Team," Journal of Sports Economics, , vol. 2(1), pages 6-21, February.
    21. Harry H. Hiller, 2000. "Mega‐events, Urban Boosterism and Growth Strategies: An Analysis of the Objectives and Legitimations of the Cape Town 2004 Olympic Bid," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 24(2), pages 449-458, June.
    22. O. Ashton Morgan & John C. Whitehead, 2018. "Willingness to Pay for Soccer Player Development in the United States," Journal of Sports Economics, , vol. 19(2), pages 279-296, February.
    23. Groothuis, Peter A. & Whitehead, John C., 2009. "The Provision Point Mechanism and Scenario Rejection in Contingent Valuation," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 271-280, October.
    24. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2018. "Estimating the Value of Medal Success in the Olympic Games," Journal of Sports Economics, , vol. 19(3), pages 398-416, April.
    25. Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-266, March.
    26. Bruce K. Johnson & Michael J. Mondello & John C. Whitehead, 2006. "Contingent Valuation of Sports," Journal of Sports Economics, , vol. 7(3), pages 267-288, August.
    27. Jeff Bennett (ed.), 2011. "The International Handbook on Non-Market Environmental Valuation," Books, Edward Elgar Publishing, number 13490.
    28. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    29. Robert A. BAADE & Robert W. BAUMANN & Victor A. MATHESON, 2010. "Slippery Slope ? Assessing The Economic Impact Of The 2002 Winter Olympic Games In Salt Lake City, Utah," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 81-92.
    30. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2016. "Willingness-To-Pay For Sporting Success Of Football Bundesliga Teams," Contemporary Economic Policy, Western Economic Association International, vol. 34(3), pages 446-462, July.
    31. Thomas Peeters & Victor Matheson & Stefan Szymanski, 2014. "Tourism and the 2010 World Cup: Lessons for Developing Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 23(2), pages 290-320.
    32. Drew Whitelegg, 2000. "Going for Gold: Atlanta's Bid for Fame," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 24(4), pages 801-817, December.
    33. 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.
    34. Harry Walton & Alberto Longo & Peter Dawson, 2008. "A Contingent Valuation of the 2012 London Olympic Games," Journal of Sports Economics, , vol. 9(3), pages 304-317, June.
    35. Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
    36. repec:feb:framed:0073 is not listed on IDEAS
    37. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    38. Vossler, Christian A. & Watson, Sharon B., 2013. "Understanding the consequences of consequentiality: Testing the validity of stated preferences in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 137-147.
    39. 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, January.
    40. Andy Barlow & David Forrest, 2015. "Benefits to their Communities from Small Town Professional Football Clubs," National Institute Economic Review, National Institute of Economic and Social Research, vol. 232(1), pages 18-29, May.
    41. John Loomis, 2011. "What'S To Know About Hypothetical Bias In Stated Preference Valuation Studies?," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 363-370, April.
    42. Brad R. Humphreys & Yang Seung Lee & Brian P. Soebbing, 2010. "Consumer behaviour in lottery: the double hurdle approach and zeros in gambling survey data," International Gambling Studies, Taylor & Francis Journals, vol. 10(2), pages 165-176, August.
    43. Vossler, Christian A. & Evans, Mary F., 2009. "Bridging the gap between the field and the lab: Environmental goods, policy maker input, and consequentiality," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 338-345, November.
    44. 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.
    45. Barlow, Andy & Forrest, David, 2015. "Benefits to their communities from small town professional football clubs," National Institute Economic Review, National Institute of Economic and Social Research, vol. 232, pages 18-29, May.
    46. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
    47. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2012. "Willingness to Pay for Downtown Public Goods Generated by Large, Sports-Anchored Development Projects: The CVM Approach," Working Papers 12-01, Department of Economics, Appalachian State University.
    48. David Forrest, 2003. "Sport and Gambling," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 598-611, Winter.
    49. Greg Richards & Julie Wilson, 2004. "The Impact of Cultural Events on City Image: Rotterdam, Cultural Capital of Europe 2001," Urban Studies, Urban Studies Journal Limited, vol. 41(10), pages 1931-1951, September.
    50. Julie L. Hotchkiss & Robert E. Moore & Stephanie M. Zobay, 2003. "Impact of the 1996 Summer Olympic Games on Employment and Wages in Georgia," Southern Economic Journal, John Wiley & Sons, vol. 69(3), pages 691-704, January.
    51. Peter A. Groothuis & Tanga M. Mohr & John C. Whitehead & Kristan Cockerill, 2015. "Payment and Policy Consequentiality in Contingent Valuation," Working Papers 15-04, Department of Economics, Appalachian State University.
    52. Iain Begg, 1999. "Cities and Competitiveness," Urban Studies, Urban Studies Journal Limited, vol. 36(5-6), pages 795-809, May.
    53. Andy Thornley, 2002. "Urban Regeneration and Sports Stadia," European Planning Studies, Taylor & Francis Journals, vol. 10(7), pages 813-818, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. I'm thinking about changing the name of this blog to "Environmental and Urban Economics"
      by John Whitehead in Environmental Economics on 2016-09-14 15:44:20

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pamela Wicker & Bernd Frick, 2020. "Sustainable Financing of Elite Athlete Development: An Empirical Analysis of Winter Sports in Austria," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    2. Tobias Streicher & Sascha L. Schmidt & Dominik Schreyer, 2019. "Referenda on Hosting the Olympics: What Drives Voter Turnout?," Journal of Sports Economics, , vol. 20(5), pages 627-653, June.
    3. Pasquale Lucio Scandizzo & Maria Rita Pierleoni, 2018. "Assessing The Olympic Games: The Economic Impact And Beyond," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 649-682, July.
    4. Martin Schnitzer & Lukas Haizinger, 2019. "Does the Olympic Agenda 2020 Have the Power to Create a New Olympic Heritage? An Analysis for the 2026 Winter Olympic Games Bid," Sustainability, MDPI, vol. 11(2), pages 1-21, January.
    5. Tim F. Thormann & Pamela Wicker, 2021. "Willingness-to-Pay for Environmental Measures in Non-Profit Sport Clubs," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    6. Pamela Wicker & Dennis Coates, 2018. "Flame Goes Out: Determinants Of Individual Support At The 2024 Hamburg Games Referendum," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 302-317, April.
    7. Josh Matti & Yang Zhou, 2022. "United we feel stronger? On the Olympics and political ideology," Economics of Governance, Springer, vol. 23(3), pages 271-300, December.
    8. Zawojska, Ewa & Gastineau, Pascal & Mahieu, Pierre-Alexandre & Cheze, Benoit & Paris, Anthony, 2021. "Measuring policy consequentiality perceptions in stated preference surveys," 2021 Annual Meeting, August 1-3, Austin, Texas 313977, Agricultural and Applied Economics Association.
    9. Whitehead, John C. & Wicker, Pamela, 2018. "Estimating willingness to pay for a cycling event using a willingness to travel approach," Tourism Management, Elsevier, vol. 65(C), pages 160-169.
    10. Funahashi, Hiroaki & Shibli, Simon & Sotiriadou, Popi & Mäkinen, Jarmo & Dijk, Bake & De Bosscher, Veerle, 2020. "Valuing elite sport success using the contingent valuation method: A transnational study," Sport Management Review, Elsevier, vol. 23(3), pages 548-562.
    11. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2020. "Validity and reliability of contingent valuation and life satisfaction measures of welfare: An application to the value of national Olympic success," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 316-330, July.
    12. John C. Whitehead & Pamela Wicker, 2017. "Using Willingness to Travel to Estimate the Monetary Value of Intangible Benefits Derived from Active Sport Event Tourism," Working Papers 17-03, Department of Economics, Appalachian State University.
    13. Chun-Chu Yeh & Cheng-Shen Lin & Chin-Huang Huang, 2018. "The Total Economic Value of Sport Tourism in Belt and Road Development—An Environmental Perspective," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    14. Bakkenbüll, Linn-Brit & Dilger, Alexander, 2016. "Willingness to pay and accept for hosting Olympic Games in Germany," Discussion Papers of the Institute for Organisational Economics 11/2016, University of Münster, Institute for Organisational Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernd Frick & Pamela Wicker, 2018. "The Monetary Value of Having a First Division Bundesliga Team to Local Residents," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(1), pages 63-103, February.
    2. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2016. "Willingness-To-Pay For Sporting Success Of Football Bundesliga Teams," Contemporary Economic Policy, Western Economic Association International, vol. 34(3), pages 446-462, July.
    3. Pasquale Lucio Scandizzo & Maria Rita Pierleoni, 2018. "Assessing The Olympic Games: The Economic Impact And Beyond," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 649-682, July.
    4. Pamela Wicker & Dennis Coates, 2018. "Flame Goes Out: Determinants Of Individual Support At The 2024 Hamburg Games Referendum," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 302-317, April.
    5. O. Ashton Morgan & John C. Whitehead, 2018. "Willingness to Pay for Soccer Player Development in the United States," Journal of Sports Economics, , vol. 19(2), pages 279-296, February.
    6. J. Lucy Lee & Jeffrey D. James, 2015. "Assessing sport brand value through use of the contingent valuation method," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(6), pages 33-44, December.
    7. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2018. "Estimating the Value of Medal Success in the Olympic Games," Journal of Sports Economics, , vol. 19(3), pages 398-416, April.
    8. Timothy C. Haab & Matthew G. Interis & Daniel R. Petrolia & John C. Whitehead, 2013. "From Hopeless to Curious? Thoughts on Hausman's "Dubious to Hopeless" Critique of Contingent Valuation," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(4), pages 593-612.
    9. Peter A. Groothuis & Tanga M. Mohr & John C. Whitehead & Kristan Cockerill, 2015. "Payment and Policy Consequentiality in Contingent Valuation," Working Papers 15-04, Department of Economics, Appalachian State University.
    10. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2020. "Validity and reliability of contingent valuation and life satisfaction measures of welfare: An application to the value of national Olympic success," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 316-330, July.
    11. Jie He & Jérôme Dupras & Thomas G. Poder, 2018. "Payment and Provision Consequentiality in Voluntary Contribution Mechanism: Single or Double “Knife-Edge” Evidence?," Cahiers de recherche 18-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    12. Richard T. Carson & Theodore Groves & John A. List, 2014. "Consequentiality: A Theoretical and Experimental Exploration of a Single Binary Choice," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(1), pages 171-207.
    13. Pamela Wicker & Bernd Frick, 2020. "Sustainable Financing of Elite Athlete Development: An Empirical Analysis of Winter Sports in Austria," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    14. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    15. Krystian Zawadzki, 2015. "Estimation Of The Willingness-To-Pay For Preserving The Football Arena In Gdansk," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 11(1), pages 44-55, August.
    16. Peter A. Groothuis & Kurt W. Rotthoff, 2016. "The Economic Impact and Civic Pride Effects of Sports Teams and Mega-Events: Do The Public and the Professionals Agree?," Economic Affairs, Wiley Blackwell, vol. 36(1), pages 21-32, February.
    17. Funahashi, Hiroaki & Shibli, Simon & Sotiriadou, Popi & Mäkinen, Jarmo & Dijk, Bake & De Bosscher, Veerle, 2020. "Valuing elite sport success using the contingent valuation method: A transnational study," Sport Management Review, Elsevier, vol. 23(3), pages 548-562.
    18. Drichoutis, Andreas C. & Vassilopoulos, Achilleas & Lusk, Jayson & Nayga, Rodolfo M., 2015. "Fair farming: Preferences for fair labor certification using four elicitation methods," MPRA Paper 62546, University Library of Munich, Germany.
    19. Roberto Gásquez & Vicente Royuela, 2014. "Is Football an Indicator of Development at the International Level?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 827-848, July.
    20. Dardanoni, Valentino & Guerriero, Carla, 2021. "Young people' s willingness to pay for environmental protection," Ecological Economics, Elsevier, vol. 179(C).

    More about this item

    Keywords

    contingent valuation method; willingness-to-pay; olympic games; public goods; sport event;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:apl:wpaper:15-06. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: O. Ashton Morgan (email available below). General contact details of provider: https://edirc.repec.org/data/deappus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.