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A tale of two audiences: spectators, television viewers and outcome uncertainty in Spanish football

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Author Info
Rob Simmons
Babatunde Buraimo

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Abstract

This paper tests for the impact of match outcome uncertainty on two types of audience for Spanish football, fans at the stadium and television viewers. We find that fans inside the stadium prefer games that are less and not more likely to finish with a close score. This is contrary to much theoretical literature in sports economics which argues that fans prefer close contests and imposes this assumption in formal modelling. We also find that television viewers prefer close contests to more predictable contests. The different preferences of fans inside the stadium and television viewers need to be reconciled by the league when considering the effectiveness of policies to redistribute resources amongst teams in the league. We use our empirical model to consider how this tension might be resolved so as to maximise total audience and total league revenues.

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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 005289.

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Date of creation: 2007
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Handle: RePEc:lan:wpaper:005289

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  1. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  2. 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)
  3. Kevin Alavy & Alison Gaskell & Stephanie Leach & Stefan Szymanski, 2006. "On the Edge of Your Seat: Demand for Football on Television and the Uncertainty of Outcome Hypothesis," Working Papers 0631, International Association of Sports Economists. [Downloadable!]
  4. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
  5. Stefan Szymanski & Stefan KÈsenne, 2004. "Competitive balance and gate revenue sharing in team sports," Journal of Industrial Economics, Blackwell Publishing, vol. 52(1), pages 165-177, 03. [Downloadable!] (restricted)
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  6. 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)
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  7. Daniel A. Rascher & John Paul G. Solmes, 2007. "Do Fans Want Close Contests? A Test of the Uncertainty of Outcome Hypothesis in the National Basketball Association," International Journal of Sport Finance, Fitness Information Technology, vol. 2(3), pages 130-141, August. [Downloadable!] (restricted)
  8. Peel, David A & Thomas, Dennis A, 1988. "Outcome Uncertainty and the Demand for Football: An Analysis of Match Attendances in the English Football League," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(3), pages 242-49, August.
  9. 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.
  10. 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)
  11. David Forrest & Robert Simmons, 2008. "Sentiment in the betting market on Spanish football," Applied Economics, Taylor and Francis Journals, vol. 40(1), pages 119-126. [Downloadable!] (restricted)
  12. Babatunde Buraimo, 2008. "Stadium attendance and television audience demand in English league football," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 513-523. [Downloadable!]
  13. Roger G. Noll, 2007. "Broadcasting And Team Sports," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 400-421, 07. [Downloadable!] (restricted)
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