nep-spo New Economics Papers
on Sports and Economics
Issue of 2012‒12‒10
two papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The (monetary) value of competitive balance for sport consumers: A stated preferences approach to European professional football By Pawlowski, Tim; Budzinski, Oliver
  2. The Effect of Additional Police Force on Crime Rate:Evidence from Women's Japan Basketball League By Hiroya Kawashima

  1. 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
  2. By: Hiroya Kawashima (Ph.D. student, Osaka School of International Public Policy (OSIPP))
    Abstract: This paper analyzes influence of an additional referee on number of fouls by using the data from Women's Japan Basketball League (WJBL) in order to examine whether number of police officers affects the crime rate. For the season of 2010-2011, the upper league of the WJBL introduced 3 referees system for the adaption of the international standard. Using this natural experiment, the Difference in Difference and the Instrumental Variable method are used to remove endogeneity. The results indicate that increased number of referees decrease number of fouls after considering both reverse causality and unobservable heterogeneity.
    Keywords: Police, Crime, Basketball
    JEL: D0 K0
    Date: 2012–11

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