The (monetary) value of competitive balance for sport consumers: A stated preferences approach to European professional football
AbstractEver since the pioneering work of Rottenberg (1956) and Neale (1964), the uncertainty of outcome hypothesis (UOH) has played a major role in the economic analysis of professional sport leagues. However, decades f empirical research have not been successful in establishing clear evidence for the importance of competitive balance (CB) for attendance or TV viewers in European professional football. In order to find possible reasons for the gap between the UOH and (the lack of) its empirical validation, our paper adopts a stated preference approach focused on the fans' perception of CB and its relevance in three European professional football leagues. The results indicate that a tipping point/threshold value of CB exists and that crossing this threshold can lead to massive demand eactions. However, since the threshold has not been reached in the leagues included in the sample, the paper provides a possible explanation for the above mentioned gap. --
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Bibliographic InfoPaper provided by Ilmenau University of Technology, Institute of Economics in its series Ilmenau Economics Discussion Papers with number 77.
Date of creation: 2012
Date of revision:
Willingness-to-pay; Competitive balance; Uncertainty of outcome hypothesis; European Football;
Other versions of this item:
- Tim Pawlowski & Oliver Budzinski, 2013. "The Monetary Value of Competitive Balance for Sport Consumers: A Stated Preference Approach to European Professional Football," International Journal of Sport Finance, Fitness Information Technology, vol. 8(2), pages 112-123, May.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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