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

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  • B Buraimo
  • R Simmons

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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Bibliographic Info

Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 591121.

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Date of creation: 2007
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Handle: RePEc:lan:wpaper:591121

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References

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  1. Daniel, Rascher & John Paul, Solmes, 2007. "Do Fans Want Close Contests? A Test of the Uncertainty of Outcome Hypothesis in the National Basketball Association," MPRA Paper 25829, University Library of Munich, Germany.
  2. Jaume Garcia & Placido Rodriguez, 2002. "The Determinants of Football Match Attendance Revisited: Empirical Evidence from the Spanish Football League," Journal of Sports Economics, , vol. 3(1), pages 18-38, February.
  3. Roger G. Noll, 2007. "Broadcasting and Team Sports," Discussion Papers 06-016, Stanford Institute for Economic Policy Research.
  4. 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.
  5. Bruce Morley & Dennis Thomas, 2007. "Attendance demand and core support: evidence from limited-overs cricket," Applied Economics, Taylor & Francis Journals, vol. 39(16), pages 2085-2097.
  6. 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.
  7. 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.
  8. 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.
  9. SZYMANSKI, Stefan & KÉSENNE, Stefan, 2003. "Competitive balance and gate revenue sharing in team sports," Working Papers 2003003, University of Antwerp, Faculty of Applied Economics.
  10. David Forrest & Rob Simmons & Stefan Szymanski, 2004. "Broadcasting, Attendance and the Inefficiency of Cartels," Review of Industrial Organization, Springer, vol. 24(3), pages 243-265, 05.
  11. Dobson,Stephen & Goddard,John, 2011. "The Economics of Football," Cambridge Books, Cambridge University Press, number 9780521517140, October.
  12. 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 & North American Association of Sports Economists.
  13. Paul, Rodney J. & Weinbach, Andrew P., 2007. "The uncertainty of outcome and scoring effects on Nielsen ratings for Monday Night Football," Journal of Economics and Business, Elsevier, vol. 59(3), pages 199-211.
  14. David Peel & Dennis Thomas, 1997. "Handicaps, outcome uncertainty and attendance demand," Applied Economics Letters, Taylor & Francis Journals, vol. 4(9), pages 567-570.
  15. 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.
  16. 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.
  17. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
  18. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  19. David Forrest & Robert Simmons, 2008. "Sentiment in the betting market on Spanish football," Applied Economics, Taylor & Francis Journals, vol. 40(1), pages 119-126.
  20. David Peel & Dennis Thomas, 1996. "Attendance demand: an investigation of repeat fixtures," Applied Economics Letters, Taylor & Francis Journals, vol. 3(6), pages 391-394.
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Citations

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Cited by:
  1. Michael A. Leeds & Sumi Sakata, 2012. "Take Me Out to the," Journal of Sports Economics, , vol. 13(1), pages 34-52, February.
  2. Tainsky, Scott & Kerwin, Shannon & Xu, Jie & Zhou, Yilun, 2014. "Will the real fans please remain seated? Gender and television ratings for pre-game and game broadcasts," Sport Management Review, Elsevier, vol. 17(2), pages 190-204.
  3. Nicolas Scelles & Christophe Durand & Liliane Bonnal & Daniel Goyeau & Wladimir Andreff, 2013. "My team is in contention? Nice, I go to the stadium! Competitive intensity in the French football Ligue 1," Economics Bulletin, AccessEcon, vol. 33(3), pages 2365-2378.
  4. Caruso Raul & Di Domizio Marco, 2013. "Hooliganism and demand for football in Italy: Attendance and counter-violence policy evaluation," wp.comunite 0101, Department of Communication, University of Teramo.
  5. Lahvicka, Jiri, 2013. "Does Match Uncertainty Increase Attendance? A Non-Regression Approach," MPRA Paper 48571, University Library of Munich, Germany.

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