Consumption Benefits of National Hockey League Game Trips Estimated from Revealed and Stated Preference Demand Data

14 Pages Posted: 30 Nov 2012

See all articles by John C. Whitehead

John C. Whitehead

Appalachian State University - Department of Economics

Bruce K. Johnson

Centre College - Department of Economics

Daniel S. Mason

University of Alberta - Faculty of Physical Education and Recreation

Gordon J. Walker

University of Alberta - Faculty of Physical Education and Recreation

Date Written: January 2013

Abstract

This paper examines the demand for hockey game trips among metropolitan and nonmetropolitan residents of Alberta, Canada. Using data on both revealed and stated preference game‐trip behavior 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 National Hockey League hockey games. We find that lower ticket prices, higher team quality, and additional capacity encourage attendance. In the status quo scenario, 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 when only ticket prices are used to calculate consumer surplus (i.e., excluding travel costs). 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.

JEL Classification: R22, L83, D61

Suggested Citation

Whitehead, John C. and Johnson, Bruce K. and Mason, Daniel S. and Walker, Gordon J., Consumption Benefits of National Hockey League Game Trips Estimated from Revealed and Stated Preference Demand Data (January 2013). Economic Inquiry, Vol. 51, Issue 1, pp. 1012-1025, 2013. Available at SSRN: https://ssrn.com/abstract=2182970 or http://dx.doi.org/10.1111/j.1465-7295.2011.00397.x

John C. Whitehead (Contact Author)

Appalachian State University - Department of Economics ( email )

Boone, NC 28608
United States

Bruce K. Johnson

Centre College - Department of Economics ( email )

Danville, KY 40422
United States

Daniel S. Mason

University of Alberta - Faculty of Physical Education and Recreation ( email )

Edmonton, AB T6G 2H9
Canada

Gordon J. Walker

University of Alberta - Faculty of Physical Education and Recreation ( email )

Edmonton, AB T6G 2H9
Canada

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