Do Soccer Associations Really Spend on a Good Thing? Empirical Evidence on Heterogeneity in the Consumer Response to Match Uncertainty of Outcome

Contemporary Economic Policy, Vol. 27, Issue 2, pp. 216-235, April 2009

20 Pages Posted: 16 Jun 2009

See all articles by Men-Andri Benz

Men-Andri Benz

University of Zurich - Department of Business Administration (IBW)

Leif Brandes

University of Lucerne

Egon P. Franck

University of Zurich - Department of Business Administration (IBW)

Abstract

The purpose of this study is to analyze whether previous results describing the effect of uncertainty of outcome on match attendance in team sports have been driven by heterogeneity in fan demand. We apply censored quantile regression methods and place particular emphasis on the relationship between match uncertainty and attendance demand, as previous results are highly ambiguous. This is more surprising, as each season association and league officials continue to spend millions on enhancing this uncertainty. We also control for season ticket holders, who are unlikely to be influenced by match specificities. Based on data from German soccer, our results indicate that fan demand shows heterogeneity across quantiles and that increasing match uncertainty of outcome exclusively benefits teams who already face strong attendance demand.

JEL Classification: D12, C14, C24, L83

Suggested Citation

Benz, Men-Andri and Brandes, Leif and Franck, Egon P., Do Soccer Associations Really Spend on a Good Thing? Empirical Evidence on Heterogeneity in the Consumer Response to Match Uncertainty of Outcome. Contemporary Economic Policy, Vol. 27, Issue 2, pp. 216-235, April 2009, Available at SSRN: https://ssrn.com/abstract=1393539 or http://dx.doi.org/10.1111/j.1465-7287.2008.00127.x

Men-Andri Benz (Contact Author)

University of Zurich - Department of Business Administration (IBW) ( email )

Hottingerstrasse 10
Plattenstrasse 14
Zurich 8032, 8032
Switzerland

Leif Brandes

University of Lucerne ( email )

Lucerne
Switzerland

Egon P. Franck

University of Zurich - Department of Business Administration (IBW) ( email )

Plattenstrasse 14
Zurich 8032
Switzerland
+41 1 634 28 45 (Phone)

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