IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v153y2017icp1-8.html
   My bibliography  Save this article

Public order and private payments: Evidence from the Swedish soccer league

Author

Listed:
  • Nyberg, Sten
  • Priks, Mikael

Abstract

Should organizers of events share the associated costs of maintaining public order? We address this question by using unique data from the Swedish soccer league where co-payment for police were introduced for some clubs only. The difference-in-differences analysis shows that co-payments increased private guards by 40% and suggests a reduction of unruly behavior by 20%. The results are consistent with our model, where co-payments alleviate under-provision in efforts by organizers to combat problems such as hooliganism due to externalities and free-riding on police services. The model also sheds light on the critique that co-payments could lead financially constrained organizers to provide less security.

Suggested Citation

  • Nyberg, Sten & Priks, Mikael, 2017. "Public order and private payments: Evidence from the Swedish soccer league," Journal of Public Economics, Elsevier, vol. 153(C), pages 1-8.
    • Handle: RePEc:eee:pubeco:v:153:y:2017:i:c:p:1-8
    DOI: 10.1016/j.jpubeco.2017.07.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004727271730107X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpubeco.2017.07.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Scott E. Atkinson & Linda R. Stanley & John Tschirhart, 1988. "Revenue Sharing as an Incentive in an Agency Problem: An example from the National Football League," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 27-43, Spring.
    2. Tausch, Franziska & Potters, Jan & Riedl, Arno, 2013. "Preferences for redistribution and pensions. What can we learn from experiments?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(3), pages 298-325, July.
    3. Ferguson, D G, , et al, 1991. "The Pricing of Sports Events: Do Teams Maximize Profit?," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 297-310, March.
    4. Assar Lindbeck & Sten Nyberg, 2006. "Raising Children to Work Hard: Altruism, Work Norms, and Social Insurance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1473-1503.
    5. Mikael Priks, 2014. "Do Surveillance Cameras Affect Unruly Behavior? A Close Look at Grandstands," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(4), pages 1160-1179, October.
    6. Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-819, July.
    7. Olivier Marie, 2016. "Police and thieves in the stadium: measuring the (multiple) effects of football matches on crime," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(1), pages 273-292, January.
    8. J. Kornai & E. Maskin & G. Roland, 2004. "Understanding the Soft Budget Constraint," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
    9. Poutvaara, Panu & Priks, Mikael, 2009. "The effect of police intelligence on group violence: Evidence from reassignments in Sweden," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 403-411, April.
    10. Neil Bruce & Michael Waldman, 1990. "The Rotten-Kid Theorem Meets the Samaritan's Dilemma," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(1), pages 155-165.
    11. Mikael Priks, 2013. "Singin' in the Rain: A Study of Social Pressure on the Soccer Field," CESifo Working Paper Series 4481, CESifo.
    12. Pedro Garcia-del-Barrio & Stefan Szymanski, 2009. "Goal! Profit Maximization Versus Win Maximization in Soccer," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 45-68, February.
    13. Schweizer, Urs, 2005. "Law and Economics of Obligations," International Review of Law and Economics, Elsevier, vol. 25(2), pages 209-228, June.
    14. George J. Stigler, 1974. "The Optimum Enforcement of Laws," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 55-67, National Bureau of Economic Research, Inc.
    15. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    16. Umberto Lago & Rob Simmons & Stefan Szymanski, 2006. "The Financial Crisis in European Football," Journal of Sports Economics, , vol. 7(1), pages 3-12, February.
    17. Andrew Zimbalist, 2003. "Sport as Business," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 503-511, Winter.
    18. Lindbeck, Assar & Weibull, Jorgen W, 1988. "Altruism and Time Consistency: The Economics of Fait Accompli," Journal of Political Economy, University of Chicago Press, vol. 96(6), pages 1165-1182, December.
    19. Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
    20. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sander, Christian J. & Thiem, Stefan, 2023. "Should football fans pay for security? Effects of a security fee," Research in Economics, Elsevier, vol. 77(1), pages 122-130.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helmut M. Dietl & Martin Grossmann & Markus Lang, 2011. "Competitive Balance and Revenue Sharing in Sports Leagues With Utility-Maximizing Teams," Journal of Sports Economics, , vol. 12(3), pages 284-308, June.
    2. Pedro Garcia-del-Barrio & Stefan Szymanski, 2009. "Goal! Profit Maximization Versus Win Maximization in Soccer," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 45-68, February.
    3. Helmut M. Dietl & Markus Lang & Stephan Werner, 2009. "Social Welfare in Sports Leagues with Profit‐Maximizing and/or Win‐Maximizing Clubs," Southern Economic Journal, John Wiley & Sons, vol. 76(2), pages 375-396, October.
    4. Alger, Ingela & Weibull, Jörgen, 2007. "The Fetters of the Sib: Weber Meets Darwin," SSE/EFI Working Paper Series in Economics and Finance 682, Stockholm School of Economics.
    5. Kunz-Kaltenhäuser, Philipp, 2021. "Is the NFL's Pro Bowl broken? Considering the players' perspective," Ilmenau Economics Discussion Papers 149, Ilmenau University of Technology, Institute of Economics.
    6. Ingela Alger & Jörgen W. Weibull, 2010. "Kinship, Incentives, and Evolution," American Economic Review, American Economic Association, vol. 100(4), pages 1725-1758, September.
    7. Marc Rohde & Christoph Breuer, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 563-581, December.
    8. Stefan Késenne, 2006. "The Win Maximization Model Reconsidered," Journal of Sports Economics, , vol. 7(4), pages 416-427, November.
    9. Ingela Alger & Jörgen W. Weibull, 2006. "Altruism and Climate," Boston College Working Papers in Economics 643, Boston College Department of Economics.
    10. Stefan Kesenne & Wilfried Pauwels, 2006. "Club Objectives and Ticket Pricing in Professional Team Sports," Eastern Economic Journal, Eastern Economic Association, vol. 32(3), pages 549-560, Summer.
    11. Stefan Szymanski, 2017. "Entry into exit: insolvency in English professional football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(4), pages 419-444, September.
    12. Rebelein, Robert P, 1998. "Ricardian Equivalence Survives Strategic Behavior," Public Finance = Finances publiques, , vol. 53(2), pages 195-228.
    13. Lukas Richau & Florian Follert & Monika Frenger & Eike Emrich, 2021. "The sky is the limit?! Evaluating the existence of a speculative bubble in European football," Journal of Business Economics, Springer, vol. 91(6), pages 765-796, August.
    14. Johan Lagerl–f, 2004. "Efficiency-enhancing signalling in the Samaritan's dilemma," Economic Journal, Royal Economic Society, vol. 114(492), pages 55-69, January.
    15. Kai A. Konrad, 2004. "Altruism and envy in contests: An evolutionarily stable symbiosis," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 22(3), pages 479-490, June.
    16. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    17. Mueller, Dennis C. & Peev, Evgeni, 2007. "Corporate governance and investment in Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 35(2), pages 414-437, June.
    18. International Monetary Fund, 2015. "Mali: Technical Assistance Report - Local Taxation and Decentralization," IMF Staff Country Reports 2015/291, International Monetary Fund.
    19. Cigno, A., 2016. "Conflict and Cooperation Within the Family, and Between the State and the Family, in the Provision of Old-Age Security," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 609-660, Elsevier.
    20. Karel Janda, 2004. "Bankruptcy Procedures with Ex Post Moral Hazard," Working Papers IES 61, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised 2004.

    More about this item

    Keywords

    Natural experiment; Co-payments for police; Free-riding; Externality; Hooliganism;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H49 - Public Economics - - Publicly Provided Goods - - - Other
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:153:y:2017:i:c:p:1-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.