Spatial Attendance Spillover in the European Football Leagues

Young Hoon Lee, Hayley Jang () and Yongcheol Shin
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Hayley Jang: Department of Economics, Sangji University

No 2006, Working Papers from Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy)

Abstract: We analyze spatial attendance spillover applying spatial panel-data models to the Italian Football League data from 2001/2002 to 2016/2017. We use numerical simulations to examine the potential impact of such spillover on the competitive balance; spillover implies an interaction between the two exclusive markets that are the principal sources of competitive imbalance. Our numerical simulations suggest that spatial spillover may create attendance variations across member teams, thus affecting the competitive balance. The final outcome depends on the spillover sign, the network structure, and the market size distribution. Next, our QML empirical results suggest that no significant spatial interaction was evident in earlier seasons (2001 to 2013), but modest spatial spillover was in play from 2013 to 2016. Combining the empirical results with numerical simulations, we find that a recent, slightly positive spillover may modestly compromise the competitive balance (by 5 to 10%).

Keywords: Spatial Spillover; Attendance; Competitive Balance; Italian Football League (search for similar items in EconPapers)
JEL-codes: L80 L83 Z20 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020
New Economics Papers: this item is included in nep-spo
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Persistent link: https://EconPapers.repec.org/RePEc:sgo:wpaper:2006

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