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Do Soccer Associations Really Spend on a Good Thing? Empirical Evidence on Heterogeneity in the Consumer Response to Match Uncertainty of Outcome

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Author Info
Men-Andri Benz
Leif Brandes
Egon Franck () (Institute for Strategy and Business Economics, University of Zurich, Institute for Strategy and Business Economics, University of Zurich)

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Abstract

The purpose of this study is to analyze whether previous results describing the effect of uncertainty of outcome on match attendance in team sports have been driven by heterogeneity in fan demand. We apply censored quantile regression methods and place particular emphasis on the relationship between match uncertainty and attendance demand, as previous results are highly ambiguous. This is the more surprising as each season association and league officials continue to spend millions on enhancing this uncertainty. We also control for season ticket holders, who are unlikely to be influenced by match specificities. Based on data from German soccer, our results indicate that fan demand shows heterogeneity across quantiles and that increasing match uncertainty of outcome exclusively benefits teams who already face strong attendance demand.

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Publisher Info
Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0048.

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Length: 35 pages
Date of creation: 2006
Date of revision: 2008
Publication status: forthcoming in: Contemporary Economic Policy
Handle: RePEc:iso:wpaper:0048

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Related research
Keywords: heterogeneous fan demand; censored quantile regression;

Other versions of this item:

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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References listed on IDEAS
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.:
  1. Hynds, Michael & Smith, Ian, 1994. "The Demand for Test Match Cricket," Applied Economics Letters, Taylor and Francis Journals, vol. 1(7), pages 103-06, July. [Downloadable!] (restricted)
  2. Whitney, James D, 1988. "Winning Games versus Winning Championships: The Economics of Fan Interest and Team Performance," Economic Inquiry, Oxford University Press, vol. 26(4), pages 703-24, October.
  3. Baimbridge, Mark & Cameron, Samuel & Dawson, Peter, 1996. "Satellite Television and the Demand for Football: A Whole New Ball Game?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(3), pages 317-33, August.
  4. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  5. Peel, David & Thomas, Dennis, 1996. "Attendance Demand: An Investigation of Repeat Fixtures," Applied Economics Letters, Taylor and Francis Journals, vol. 3(6), pages 391-94, June. [Downloadable!] (restricted)
  6. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  7. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
  8. Borland, Jeff & Lye, Jenny, 1992. "Attendance at Australian Rules Football: A Panel Study," Applied Economics, Taylor and Francis Journals, vol. 24(9), pages 1053-58, September.
  9. Rob Simmons & Babatunde Buraimo, 2006. "Market size and attendance in English Premier League football," Working Papers 003092, Lancaster University Management School, Economics Department. [Downloadable!]
  10. Dobson, S M & Goddard, J A, 1992. "The Demand for Standing and Seated Viewing Accommodation in the English Football League," Applied Economics, Taylor and Francis Journals, vol. 24(10), pages 1155-63, October.
  11. David Forrest & Robert Simmons & Babatunde Buraimo, 2005. "Outcome Uncertainty And The Couch Potato Audience," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(4), pages 641-661, 09. [Downloadable!] (restricted)
    Other versions:
  12. Peel, David A & Thomas, Dennis A, 1992. "The Demand for Football: Some Evidence on Outcome Uncertainty," Empirical Economics, Springer, vol. 17(2), pages 323-31.
  13. Peel, David & Thomas, Dennis, 1997. "Handicaps, Outcome Uncertainty and Attendance Demand," Applied Economics Letters, Taylor and Francis Journals, vol. 4(9), pages 567-70, September. [Downloadable!] (restricted)
  14. Jones, J C H & Ferguson, D G, 1988. "Location and Survival in the National Hockey League," Journal of Industrial Economics, Blackwell Publishing, vol. 36(4), pages 443-57, June. [Downloadable!] (restricted)
  15. Simmons, Robert, 1996. "The Demand for English League Football: A Club-Level Analysis," Applied Economics, Taylor and Francis Journals, vol. 28(2), pages 139-55, February. [Downloadable!] (restricted)
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