| By: |
Pawlowski, Tim;
Budzinski, Oliver |
| Abstract: |
Ever since the pioneering work of Rottenberg (1956) and Neale (1964), the
uncertainty of outcome hypothesis (UOH) has played a major role in the
economic analysis of professional sport leagues. However, decades f empirical
research have not been successful in establishing clear evidence for the
importance of competitive balance (CB) for attendance or TV viewers in
European professional football. In order to find possible reasons for the gap
between the UOH and (the lack of) its empirical validation, our paper adopts a
stated preference approach focused on the fans' perception of CB and its
relevance in three European professional football leagues. The results
indicate that a tipping point/threshold value of CB exists and that crossing
this threshold can lead to massive demand eactions. However, since the
threshold has not been reached in the leagues included in the sample, the
paper provides a possible explanation for the above mentioned gap. -- |
| Keywords: |
Willingness-to-pay,Competitive balance,Uncertainty of outcome hypothesis,European Football |
| JEL: |
D12 L83 |
| Date: |
2012 |
| URL: |
http://d.repec.org/n?u=RePEc:zbw:tuiedp:77&r=spo |