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Estimating the value of national sporting success

Author

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  • Wicker, Pamela
  • Prinz, Joachim
  • von Hanau, Tassilo

Abstract

The sporting success of athletes and national teams is associated with a feel-good-factor among the population. These positive social effects can be regarded as public goods that entail a certain value for the population. The value of public or non-market goods can be estimated using the contingent valuation method (CVM). A theoretical model is developed based on the consumption capital theory. This model explains the willingness-to-pay (WTP) for winning the 2010 Football World Cup as a function of sport-related and football-specific consumption capital as well as intangible and socio-economic factors. Within a survey of German citizens (n=3049), the value of winning the 2010 Football World Cup is assessed using CVM. The model is tested using regression analyses to identify the significant determinants of WTP. The results reveal half of the respondents stated a WTP that amounted to €26 on average. The findings of a mixed-effects logistic as well as an alternative Tobit regression model show that intangible factors such as identification with the country and with the national team as well as individual and national importance of a good result significantly influence individuals’ WTP. Based on the findings of this study, it can be recommended that policy makers invest in national teams and athletes as national sporting success can generate a feel-good-factor among the population and make people happier. Additionally, it can impact on peoples’ perceptions and expectations about current and future economic situations which in turn determine macro-economic outcomes. Moreover, such estimations could be integrated into cost-benefit terms that are carried out for sport events.

Suggested Citation

  • Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
  • Handle: RePEc:eee:spomar:v:15:y:2012:i:2:p:200-210
    DOI: 10.1016/j.smr.2011.08.007
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    Cited by:

    1. Wicker, Pamela & Kiefer, Stephanie & Dilger, Alexander, 2013. "The value of sporting success to Germans: Comparing the 2012 UEFA Championships with the 2012 Olympics," Discussion Papers of the Institute for Organisational Economics 11/2013, University of Münster, Institute for Organisational Economics.
    2. repec:eee:spomar:v:20:y:2017:i:3:p:285-295 is not listed on IDEAS
    3. su, chin, 2015. "Estimation of the Willingness to Pay for Preserving the Sports Arenas. The case of Poland," MPRA Paper 74182, University Library of Munich, Germany, revised 2016.
    4. Vörös, Tünde, 2017. "Költség-haszon elemzési keretrendszer sportberuházások társadalmi-gazdasági értékeléséhez
      [An economic framework for cost-benefit analysis of sports facilities]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 394-420.
    5. repec:spr:schmbr:v:70:y:2018:i:1:d:10.1007_s41464-017-0044-9 is not listed on IDEAS
    6. Pawlowski, Tim & Downward, Paul & Rasciute, Simona, 2014. "Does national pride from international sporting success contribute to well-being? An international investigation," Sport Management Review, Elsevier, vol. 17(2), pages 121-132.
    7. J. Lucy Lee & Jeffrey D. James, 2015. "Assessing sport brand value through use of the contingent valuation method," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(6), pages 33-44, December.
    8. repec:eee:touman:v:44:y:2014:i:c:p:113-122 is not listed on IDEAS
    9. Karanfil, Fatih, 2017. "An empirical analysis of European football rivalries based on on-field performances," Sport Management Review, Elsevier, vol. 20(5), pages 468-482.
    10. Dilger, Alexander & Bakkenbüll, Linn-Brit, 2016. "Zahlungsbereitschaften für deutsche Erfolge bei den Olympischen Winterspielen 2014 in Sotschi und die Austragung Olympischer Spiele in Deutschland," Discussion Papers of the Institute for Organisational Economics 05/2016, University of Münster, Institute for Organisational Economics.
    11. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2017. "The effect of sporting success and management failure on attendance demand in the Bundesliga: a revealed and stated preference travel cost approach," Applied Economics, Taylor & Francis Journals, vol. 49(52), pages 5287-5295, November.
    12. Robert, Ruszkowski, 2017. "The Contingent Valuation Method in assessing the value of sport’s stadium in developing nations. The case of Poland," MPRA Paper 80581, University Library of Munich, Germany.
    13. Bakkenbüll, Linn-Brit & Dilger, Alexander, 2015. "The willigness to pay for a German win of the 2014 FIFA World Cup in Brazil," Discussion Papers of the Institute for Organisational Economics 11/2015, University of Münster, Institute for Organisational Economics.
    14. Hallmann, Kirstin & Breuer, Christoph & Kühnreich, Benedikt, 2013. "Happiness, pride and elite sporting success: What population segments gain most from national athletic achievements?," Sport Management Review, Elsevier, vol. 16(2), pages 226-235.
    15. Wiker, Dagmara, 2017. "The valuation of publicly financed sport’s arenas," MPRA Paper 82913, University Library of Munich, Germany.
    16. See, Chan Ken, 2017. "Intangible value in preserving the Sports Arenas," MPRA Paper 81505, University Library of Munich, Germany.
    17. Pamela Wicker & John C Whitehead & Daniel S Mason & Bruce K Johnson, 2017. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3597-3614, November.

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