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A Spatial Cross-Sectional Analysis of the Elasticity of Demand for Soccer

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  • Forrest, David
  • Simmons, Robert
  • Feehan, Patrick

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. Copyright 2002 by Scottish Economic Society.

Suggested Citation

  • Forrest, David & Simmons, Robert & Feehan, Patrick, 2002. "A Spatial Cross-Sectional Analysis of the Elasticity of Demand for Soccer," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 336-355, August.
  • Handle: RePEc:bla:scotjp:v:49:y:2002:i:3:p:336-55
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    Citations

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    Cited by:

    1. Marco Di Domizio & Raul Caruso, 2015. "Hooliganism and Demand for Football in Italy: Attendance and Counterviolence Policy Evaluation," German Economic Review, Verein für Socialpolitik, vol. 16(2), pages 123-137, May.
    2. Babatunde Buraimo & David Forrest & Robert Simmons, 2006. "Robust Estimates of the Impacts of Broadcasting on Match Attendance in Football," IASE Conference Papers 0637, International Association of Sports Economists.
    3. Wladimir Andreff & Gaël Raballand, 2011. "Is European Football’s Future to Become a Boring Game?," Chapters,in: Contemporary Issues in Sports Economics, chapter 8 Edward Elgar Publishing.
    4. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
    5. Georg Stadtmann, 2006. "Frequent News and Pure Signals: The Case of a Publicly Traded Football Club," Working Papers 0603, International Association of Sports Economists;North American Association of Sports Economists.
    6. Egon Franck & Stephan Nüesch, 2007. "The Role of Patriotism in Explaining TV Audience of National Team Games - Evidence from Four International Tournaments," Working Papers 0014, University of Zurich, Center for Research in Sports Administration (CRSA).
    7. Partosch, Christoph, 2014. "Der Einfluss der Champions League auf die Wettbewerbsposition einzelner Vereine und die Competitive Balance der Bundesliga," Discussion Papers of the Institute for Organisational Economics 3/2014, University of Münster, Institute for Organisational Economics.
    8. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    9. Ferda HALICIOGLU, 2005. "Forecasting the Professional Team Sporting Events: Evidence from Euro 2000 and 2004 Football Tournaments," Industrial Organization 0508001, EconWPA.
    10. Babatunde Buraimo & David Forrest & Robert Simmons, 2007. "Freedom of Entry, Market Size, and Competitive Outcome: Evidence from English Soccer," Southern Economic Journal, Southern Economic Association, vol. 74(1), pages 204-213, July.
    11. Leif Brandes & Egon Franck & Philipp Theiler, 2013. "The group size and loyalty of football fans: a two-stage estimation procedure to compare customer potentials across teams," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(2), pages 347-369, February.
    12. Leif Brandes & Egon Franck & Stephan Nuesch, 2006. "Local Heroes and Superstars - An Empirical Analysis of Star Attraction in German Soccer," Working Papers 0046, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2007.
    13. Ferda Halicioglu, 2005. "Can We Predict The Outcome Of The International Football Tournaments : The Case Of Euro 2000?," Microeconomics 0503008, EconWPA.
    14. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français ?," Post-Print halshs-00639300, HAL.
    15. Wladimir Andreff (ed.), 2011. "Contemporary Issues in Sports Economics," Books, Edward Elgar Publishing, number 14146.
    16. Andersen, Per & Vetter, Henrik, 2015. "Pricing as a risky choice: Uncertainty and survival in a monopoly market," Economics Discussion Papers 2015-53, Kiel Institute for the World Economy (IfW).
    17. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français," Documents de travail du Centre d'Economie de la Sorbonne 11048, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    18. repec:pal:jorsoc:v:60:y:2009:i:2:d:10.1057_palgrave.jors.2602549 is not listed on IDEAS

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