Talent and/or Popularity: What Does It Take to Be a Superstar?
Economic Inquiry, Forthcoming
30 Pages Posted: 29 Nov 2010
Date Written: April 8, 2010
We show that both talent and popularity significantly contribute to stars’ market values in German soccer. The talent-versus-popularity controversy on the sources of stardom goes back to Rosen (1981) and Adler (1985). All attempts to resolve the controversy empirically face the difficulty of accurately identifying talent. In professional sports, rank-order tournaments help in ascertaining talent. Analyzing a team setting, we use 20 different performance indicators to estimate a player’s talent according to his ability to increase the team’s winning probability.
Keywords: superstars, talent, popularity, soccer
JEL Classification: J31, J44, L83
Suggested Citation: Suggested Citation