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A Spatial Cross–Sectional Analysis of Elasticity of Demand for Soccer

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  • David Forrest
  • Robert Simmons
  • Patrick Feehan

Abstract

Several studies estimate the demand for watching English professional football (soccer) as highly inelastic, a puzzling result given that clubs appear to possess a degree of monopoly power. We discuss weaknesses in earlier studies and offer an alternative method of assessing elasticity based on travel costs of spectators living different distances from the grounds. We find that elasticity varies across the 20 senior clubs for which data were available but in almost every case demand is more elastic than reported in the existing literature and pricing policy appears therefore to be more orientated towards profit maximisation than previously thought.

Suggested Citation

  • David Forrest & Robert Simmons & Patrick Feehan, 2002. "A Spatial Cross–Sectional Analysis of Elasticity of Demand for Soccer," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 336-356, August.
    • Handle: RePEc:bla:scotjp:v:49:y:2002:i:3:p:336-356
    DOI: 10.1111/1467-9485.00235
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    References listed on IDEAS

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    1. 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 317-333, August.
    2. Daniel R. Marburger, 1997. "Optimal ticket pricing for performance goods," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 375-381.
    3. Stefan Szymanski & Ron Smith, 2010. "The English Football Industry: Profit, Performance and Industrial Structure," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 1, pages 1-26, Palgrave Macmillan.
    4. Forrest, David & Grime, Keith & Woods, Robert, 2000. "Is It Worth Subsidising Regional Repertory Theatre?," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 381-397, April.
    5. Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-146, June.
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    Cited by:

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    2. Morten Kringstad & Tor-Eirik Olsen & Tor Georg Jakobsen & Rasmus K. Storm & Nikolaj Schelde, 2021. "Match Experience at the Danish Women’s Soccer National A-Team Matches: An Explorative Study," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    3. Alan Collins & Chris Hand & Andrew Ryder, 2005. "The Lure of the Multiplex? The Interplay of Time, Distance, and Cinema Attendance," Environment and Planning A, , vol. 37(3), pages 483-501, March.
    4. Carlos Gomez-Gonzalez & Helmut Dietl & Cornel Nesseler, 2019. "Does performance justify the underrepresentation of women coaches? Evidence from professional women’s soccer," Sport Management Review, Taylor & Francis Journals, vol. 22(5), pages 640-651, December.
    5. Babatunde Buraimo & David Forrest & Robert Simmons, 2007. "Freedom of Entry, Market Size, and Competitive Outcome: Evidence from English Soccer," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 204-213, July.

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