I know what you did last weekend- or do I? Introducing mental anchoring to the demand for sport
AbstractFootball matches are by no means homogenous goods. Rather, there are big differences in single match quality, which is ex-ante unobservable to consumers. We argue that quality uncertainty leads consumers to search for quality proxies which are observable in advance. Aggregate demand functions are shown to depend merely on prices, ex-ante quality perception and stochastic influence factors. Following the work by Kahneman, Tversky and Slovic, we suggest that consumer behaviour is to some extent driven by mental anchoring. Therefore, the usual approach to rely on absolute measures only, seems doubtful. The main focus of our empirical analysis is to introduce relative quality measures, which are based on different anchor levels. Besides seasonal-dynamic and seasonal-static anchors, this specification allows us to include absolute quality proxies as a special case. Applying median regression on a sample from over 2000 individual matches in the German Bundesliga, we find evidence for mental anchoring in the demand for sport. Our results indicate that consumers tend to compare current values for quality proxies to last season’s indicator values instead of last match’s indicator values.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Zurich, Center for Research in Sports Administration (CRSA) in its series Working Papers with number 0008.
Length: 34 pages
Date of creation: 2006
Date of revision:
Other versions of this item:
- Men-Andri Benz & Leif Brandes & Egon Franck, 2006. "I know what you did last weekend- or do I? Introducing mental anchoring to the demand for sport," Working Papers, University of Zurich, Institute for Strategy and Business Economics (ISU) 0047, University of Zurich, Institute for Strategy and Business Economics (ISU).
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
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.:
- David Forrest & Rob Simmons & Stefan Szymanski, 2004. "Broadcasting, Attendance and the Inefficiency of Cartels," Review of Industrial Organization, Springer, Springer, vol. 24(3), pages 243-265, 05.
- Martin B. Schmidt & David J. Berri, 2001. "Competitive Balance and Attendance: The Case of Major League Baseball," Journal of Sports Economics, , , vol. 2(2), pages 145-167, May.
- David Forrest & Robert Simmons & Babatunde Buraimo, 2005.
"Outcome Uncertainty And The Couch Potato Audience,"
Scottish Journal of Political Economy, Scottish Economic Society,
Scottish Economic Society, vol. 52(4), pages 641-661, 09.
- Gärtner, Manfred & Pommerehne, Werner W., 1977. "Der Fußballzuschauer - Ein Homo Oeconomicus?," Discussion Papers, Series I 102, University of Konstanz, Department of Economics.
- Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 19(4), pages 478-502, Winter.
- Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 41(4), pages 1137-1187, December.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 33-50, January.
- Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , , vol. 3(2), pages 133-148, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IBW IT Support).
If references are entirely missing, you can add them using this form.