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Should football fans pay for security? Effects of a security fee

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  • Sander, Christian J.
  • Thiem, Stefan

Abstract

There is a lively debate on whether football fans should pay a security fee to finance police activities. This paper investigates the price effect on the demand for tickets in a dynamic setting, by considering two subgroups of spectators, namely fans and hooligans. We analyze a situation in which the demand from each subgroup causes a negative social externality for members of the other group but a positive one for members of the same group. We show that charging a security fee may start a dynamic process, leading to fewer fans and more hooligans attending matches and thus, counterintuitively to even more violence. Therefore, the present study provides an argument to refrain from charging a security fee. As an alternative economic solution, we discuss the strategy of outpricing hooligans.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:reecon:v:77:y:2023:i:1:p:122-130
    DOI: 10.1016/j.rie.2023.01.006
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    References listed on IDEAS

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    More about this item

    Keywords

    Hooliganism; Mob-goods; Security fee; Football; Violence;
    All these keywords.

    JEL classification:

    • D - Microeconomics
    • D - Microeconomics
    • D - Microeconomics
    • H - Public Economics
    • Z - Other Special Topics

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