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

Authors

  • MEN-ANDRI BENZ,

    1. Benz: Simon Kucher & Partners, Strategy & Marketing Consultants, Financial Services and Consumer Goods Division, Imbisbühlstrasse 149, 8049 Zürich, Switzerland. Phone +41 44 226 50 40, Fax +41 44 226 50 50, E-mail men-andri.benz@simon-kucher.com
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      We are grateful to Bo Honoré, Rob Simmons, Rainer Winkelmann, Jaume García, Stefan Boes, Gabi Ruoff, Stephan Veen, Johannes Mure, and seminar participants at the University of Zurich, participants at the International Association of Sports Economists (IASE) Conference 2006 and at the 81st meeting of the Western Economic Association (WEA) in 2006 for helpful comments. We would also like to thank three anonymous referees for their helpful comments and suggestions. Erwin Verbeek provided helpful research assistance. Financial support from the Swiss National Fund is gratefully acknowledged. All errors remain our own.

  • LEIF BRANDES,

    1. Brandes: Faculty of Economics, Business Administration and Information Technology, Institute for Strategy and Business Economics, University of Zurich, CH-8032 Zurich, Switzerland. Phone +41 44 634 2962, Fax +41 44 634 4348, E-mail leif.brandes@isu.uzh.ch
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      We are grateful to Bo Honoré, Rob Simmons, Rainer Winkelmann, Jaume García, Stefan Boes, Gabi Ruoff, Stephan Veen, Johannes Mure, and seminar participants at the University of Zurich, participants at the International Association of Sports Economists (IASE) Conference 2006 and at the 81st meeting of the Western Economic Association (WEA) in 2006 for helpful comments. We would also like to thank three anonymous referees for their helpful comments and suggestions. Erwin Verbeek provided helpful research assistance. Financial support from the Swiss National Fund is gratefully acknowledged. All errors remain our own.

  • EGON FRANCK

    1. Franck: Faculty of Economics, Business Administration and Information Technology, Institute for Strategy and Business Economics, University of Zurich, CH-8032 Zurich, Switzerland. Phone + 41 44 634 2845, Fax + 41 44 634 4348, E-mail egon.franck@isu.uzh.ch
    Search for more papers by this author
    • *

      We are grateful to Bo Honoré, Rob Simmons, Rainer Winkelmann, Jaume García, Stefan Boes, Gabi Ruoff, Stephan Veen, Johannes Mure, and seminar participants at the University of Zurich, participants at the International Association of Sports Economists (IASE) Conference 2006 and at the 81st meeting of the Western Economic Association (WEA) in 2006 for helpful comments. We would also like to thank three anonymous referees for their helpful comments and suggestions. Erwin Verbeek provided helpful research assistance. Financial support from the Swiss National Fund is gratefully acknowledged. All errors remain our own.


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)

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