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Economic analysis of the 12th man: should the fans be paid?

Author

Listed:
  • Luc Arrondel

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Jean-Pascal Gayant

    (IUT de Saint-Malo - UR - Université de Rennes, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Jean-François Laslier

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The paper provides a theoretical sports league model to study the pricing of tickets. It considers the trade-off between maximizing match day revenues, through high prices, and maximizing the support of the most demonstrative fans, through low prices. These spectators, the "ultras" contribute to the competitive level of the club along with team-level talent, and therefore indirectly increase the number of victories, hence the revenue from TV rights. We model the role of effusive spectators and show that, in a non-cooperative Nash equilibrium, it may be optimal for the club to subsidize their presence in order to take full advantage of the 12th man effect.

Suggested Citation

  • Luc Arrondel & Jean-Pascal Gayant & Jean-François Laslier, 2023. "Economic analysis of the 12th man: should the fans be paid?," PSE-Ecole d'économie de Paris (Postprint) halshs-03962599, HAL.
    • Handle: RePEc:hal:pseptp:halshs-03962599
    DOI: 10.1016/j.serev.2023.100017
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03962599v2
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