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The Group Size and Loyalty of Football Fans: A Two-Stage Estimation Procedure to Compare Customer Potential Across Teams

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Author Info

  • Leif Brandes

    ()
    (Department for Business Administration, University of Zurich)

  • Egon Franck

    ()
    (Department for Business Administration, University of Zurich)

  • Philipp Theiler

    ()
    (Department for Business Administration, University of Zurich)

Abstract

This paper presents estimation results on the size and loyalty of sport teamsÕ sup- porter groups in professional German football. Based on a novel two-stage estimation procedure, we find clear evidence for heterogeneity across teams. In a first stage, a random utility model for a representative consumer is modeled and fitted to more than 1,700 matches over the seasons 1996 - 2001. In a second-step, attendance prob- abilities are predicted for the seasons 2002 - 2003 to estimate group sizes. A teamÕs group size is positively correlated with its memberships (rho =0.61, p

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File URL: http://repec.business.uzh.ch/RePEc/iso/ISU_WPS/126_ISU_full.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0126.

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Date of creation: 2010
Date of revision: 2011
Handle: RePEc:iso:wpaper:0126

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Keywords: Group size; Random utility model; Soccer; Ticket demand;

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  1. Georg Stadtmann & Dirk Czarnitzki, 2002. "Uncertainty of outcome versus reputation: Empirical evidence for the First German Football Division," Empirical Economics, Springer, vol. 27(1), pages 101-112.
  2. Men-Andri Benz & Leif Brandes & Egon Franck, 2006. "Do Soccer Associations Really Spend on a Good Thing? Empirical Evidence on Heterogeneity in the Consumer Response to Match Uncertainty of Outcome," Working Papers 0009, University of Zurich, Center for Research in Sports Administration (CRSA), revised 2008.
  3. B Buraimo & D Forrest & R Simmons, 2004. "Outcome uncertainty and the couch potato audience," Working Papers 542822, Lancaster University Management School, Economics Department.
  4. D Forrest & R Simmons & B Buraimo, 2005. "Freedom of entry, market size and competitive outcome: evidence from English soccer," Working Papers 567322, Lancaster University Management School, Economics Department.
  5. Stefano DellaVigna, 2007. "Psychology and Economics: Evidence from the Field," NBER Working Papers 13420, National Bureau of Economic Research, Inc.
  6. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
  7. Forrest, David & Simmons, Robert & Feehan, Patrick, 2002. "A Spatial Cross-Sectional Analysis of the Elasticity of Demand for Soccer," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 336-55, August.
  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. Falkinger, Josef, 2005. "Limited Attention as the Scarce Resource in an Information-Rich Economy," IZA Discussion Papers 1538, Institute for the Study of Labor (IZA).
  10. McFadden, Daniel L., 2000. "Economic Choices," Nobel Prize in Economics documents 2000-6, Nobel Prize Committee.
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