Using Revealed and Stated Preference Data to Estimate the Demand and Consumption Benefits of Sporting Events: An Application to National Hockey League Game Trips
This paper examines the demand for hockey game trips among metropolitan and non-metropolitan residents of Alberta, Canada. Using data on both revealed and stated preference game trip behaviour from a telephone survey conducted throughout Alberta, we estimate the effect of ticket prices, team quality, arena amenities, and capacity on the latent demand for NHL hockey. We find that lower ticket prices, higher team quality and additional capacity encourage attendance. The base case consumer surplus per game is $50 for those who had attended hockey games and about 50% less for those who had not attended games. Exploiting the stated preference data, we develop a number of other consumer surplus estimates. We also include travel costs in the estimation of the demand function and estimate the full value of the game trip considering both ticket prices and travel costs. Sold out arenas in Calgary and Edmonton generate annual consumption benefits of $40 and $35 million. Considering the full price consumer surplus for the Calgary Flames of $103 per game trip, the annual consumption benefits may be as high as $82 million. Key Words: Hockey demand, revealed preference, stated preference, consumer surplus
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.business.appstate.edu/departments/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gerald Carlino & N. Edward Coulson, 2002.
"Compensating differentials and the social benefits of the NFL,"
02-12, Federal Reserve Bank of Philadelphia.
- Carlino, Gerald & Coulson, N. Edward, 2004. "Compensating differentials and the social benefits of the NFL," Journal of Urban Economics, Elsevier, vol. 56(1), pages 25-50, July.
- Dennis Coates & Thane Harrison, 2005.
"Baseball Strikes and the Demand for Attendance,"
Journal of Sports Economics,
, vol. 6(3), pages 282-302, August.
- Carolyn A. Dehring & Craig A. Depken, II & Michael R. Ward, 2007.
"A Direct Test of the Homevoter Hypothesis,"
0719, International Association of Sports Economists;North American Association of Sports Economists.
- John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2008.
"Combining Revealed And Stated Preference Data To Estimate The Nonmarket Value Of Ecological Services: An Assessment Of The State Of The Science,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 22(5), pages 872-908, December.
- John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2005. "Combining Revealed and Stated Preference Data to Estimate the Nonmarket Value of Ecological Services: An Assessment of the State of the Science," Working Papers 05-19, Department of Economics, Appalachian State University, revised 2007.
- Czarnitzki, Dirk & Stadtmann, Georg, 1999.
"Uncertainty of outcome versus reputation: empirical evidence for the First German Football Division,"
ZEW Discussion Papers
99-46, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Georg Stadtmann & Dirk Czarnitzki, 2002. "Uncertainty of outcome versus reputation: Empirical evidence for the First German Football Division," Empirical Economics, Springer, vol. 27(1), pages 101-112.
- Michael R. Butler, 2002. "Interleague Play and Baseball Attendance," Journal of Sports Economics, , vol. 3(4), pages 320-334, November.
- Leo Kahane & Stephen Shmanske, 1997. "Team roster turnover and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 425-431.
- Rodney J. Paul, 2003. "Variations in NHL Attendance," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(2), pages 345-364, 04.
- W. Douglass Shaw, 2002. "Testing the Validity of Contingent Behavior Trip Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 401-414.
- Philip M. Clarke, 2002. "Testing the convergent validity of the contingent valuation and travel cost methods in valuing the benefits of health care," Health Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 117-127.
- BK. Johnson & JC. Whitehead, 2000. "Value of public goods from sports stadiums: the CVM approach," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 48-58, 01.
- Coates, Dennis & Humphreys, Brad R., 2006. "Proximity benefits and voting on stadium and arena subsidies," Journal of Urban Economics, Elsevier, vol. 59(2), pages 285-299, March.
- Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761 Elsevier.
- Alexander, Donald L. & Kern, William & Neill, Jon, 2000. "Valuing the Consumption Benefits from Professional Sports Franchises," Journal of Urban Economics, Elsevier, vol. 48(2), pages 321-337, September.
When requesting a correction, please mention this item's handle: RePEc:apl:wpaper:09-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (O. Ashton Morgan)
If references are entirely missing, you can add them using this form.