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Moving Beyond Economic Impact: A Closer Look at the Contingent Valuation Method

Author

Listed:
  • Matthew Walker

    () (East Carolina University)

  • Michael J. Mondello

    () (Florida State University)

Abstract

The issue related to public investment in sport facilities has generated lively debate between economists, researchers, and policy makers. Empirical evidence detailing benefits derived from such initiatives has become mired in the discussion of whether sports stadiums do serve as economic catalysts. Research has demonstrated that new stadiums and arenas have no significant fiduciary impact on local economies, including employment. However, a possibility not fully explored is the idea that stadiums and teams generate both tangible and intangible benefits that can support the justification for some level of public investment. Consequently, the contingent valuation method (CVM) has been employed by sport researchers for the purpose of measuring benefits accrued from such investments. However, the CVM is the most controversial of the non-market valuation methods and subject to a number of methodological criticisms. This article will explore the CVM beyond the scope of traditional economic impact studies and highlight its use and relevance in the sport management discourse.

Suggested Citation

  • Matthew Walker & Michael J. Mondello, 2007. "Moving Beyond Economic Impact: A Closer Look at the Contingent Valuation Method," International Journal of Sport Finance, Fitness Information Technology, vol. 2(3), pages 149-160, August.
  • Handle: RePEc:jsf:intjsf:v:2:y:2007:i:3:p:149-160
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    Citations

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    Cited by:

    1. de Boer, Willem I.J. & Koning, Ruud H. & Mierau, Jochen O., 2017. "Ex-ante and ex-post willingness-to-pay for hosting a major cycling event," Research Report 17013-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. 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.
    3. John C. Whitehead & Pamela Wicker, 2017. "Using Willingness to Travel to Estimate the Monetary Value of Intangible Benefits Derived from Active Sport Event Tourism," Working Papers 17-03, Department of Economics, Appalachian State University.
    4. Wladimir Andreff, 2012. "The winner's curse: why is the cost of sports mega-events so often underestimated?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00703466, HAL.
    5. Wladimir Andreff, 2012. "The winner's curse: why is the cost of sports mega-events so often underestimated?," Post-Print halshs-00703466, HAL.
    6. Kim, Woosoon & Walker, Matthew, 2012. "Measuring the social impacts associated with Super Bowl XLIII: Preliminary development of a psychic income scale," Sport Management Review, Elsevier, vol. 15(1), pages 91-108.
    7. Rockerbie, Duane W & Easton, Stephen, 2016. "Of Bricks and Bats: New Stadiums, Talent Supply and Team Performance in Major League Baseball," MPRA Paper 77430, University Library of Munich, Germany.
    8. 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.
    9. 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.
    10. 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.
    11. repec:eee:spomar:v:20:y:2017:i:3:p:285-295 is not listed on IDEAS
    12. 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.
    13. 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.
    14. repec:spr:schmbr:v:70:y:2018:i:1:d:10.1007_s41464-017-0044-9 is not listed on IDEAS
    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.
    18. Wladimir Andreff, 2012. "The Winner’s Curse: Why is the Cost of Mega Sporting Events so Often Underestimated?," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 4 Edward Elgar Publishing.
    19. repec:eee:touman:v:65:y:2018:i:c:p:160-169 is not listed on IDEAS

    More about this item

    Keywords

    contingent valuation method; CVM; valuation; stated preference; non-market consumption;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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