The Demand for Football in Switzerland: An Empirical Estimation

20 Pages Posted: 25 Jan 2008 Last revised: 28 Oct 2009

See all articles by Andrea Baranzini

Andrea Baranzini

University of Applied Sciences Western Switzerland - Geneva School of Business Administration

José V. Ramirez

University of Applied Sciences Western Switzerland - Geneva School of Business Administration

Sylvain Weber

University of Neuchatel - Institute for Research in Economics (IRENE)

Date Written: January 2008

Abstract

This paper identifies the factors determining the attendance at football games in Switzerland. Our data covers three seasons of the top division of the Swiss football league, between 2001 and 2004, which includes a major revision of the championship rules in 2003-2004. We were able to gather a high amount of information, allowing us to take into consideration several factors not always accounted for simultaneously in the literature, such as ticket price, capacity constraint, TV coverage, as well as more traditional factors like uncertainty. In order to cope with problems imposed by capacity constraints as well as the panel dimension of the data, we make use of a random effects Tobit model. Among others, our results show that TV coverage does not have a significant impact on the number of spectators, and, except for FC Basel, the price-elasticity is relatively low, which indicates that football clubs could raise their gate revenues by increasing ticket prices. Furthermore, the new championship formula did clearly raise attendances.

Keywords: Demand for sport, attendance, football, censoring, Tobit estimation

JEL Classification: L83, C24

Suggested Citation

Baranzini, Andrea and Ramirez, José V. and Weber, Sylvain, The Demand for Football in Switzerland: An Empirical Estimation (January 2008). Available at SSRN: https://ssrn.com/abstract=1087243 or http://dx.doi.org/10.2139/ssrn.1087243

Andrea Baranzini (Contact Author)

University of Applied Sciences Western Switzerland - Geneva School of Business Administration ( email )

CH-1227 Geneva
Switzerland
+41-22-388 1718 (Phone)
+41-22-388 1701 (Fax)

HOME PAGE: http://campus.hesge.ch/baranzia/

José V. Ramirez

University of Applied Sciences Western Switzerland - Geneva School of Business Administration ( email )

CH-1227 Geneva
Switzerland

Sylvain Weber

University of Neuchatel - Institute for Research in Economics (IRENE) ( email )

A.-L. Breguet 2
Neuchatel, 2000
Switzerland
+41327181442 (Phone)

HOME PAGE: http://www2.unine.ch/irene/lang/en/collaborateurs/sylvain_weber

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