DO SOCCER ASSOCIATIONS REALLY SPEND ON A GOOD THING? EMPIRICAL EVIDENCE ON HETEROGENEITY IN THE CONSUMER RESPONSE TO MATCH UNCERTAINTY OF OUTCOME

Men‐andri Benz, Leif Brandes and Egon Franck

Contemporary Economic Policy, 2009, vol. 27, issue 2, 216-235

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 D12, C14, C24, L83)

Date: 2009
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https://doi.org/10.1111/j.1465-7287.2008.00127.x

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Working Paper: Do Soccer Associations Really Spend on a Good Thing? Empirical Evidence on Heterogeneity in the Consumer Response to Match Uncertainty of Outcome (2008)
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