nep-spo New Economics Papers
on Sports and Economics
Issue of 2015‒03‒05
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Consequences of the Three-Point Rule in Argentine Professional Soccer By Juan Mendoza; Andrés Rosas
  2. Superbowl Ads By Hartmann, Wesley R.; Klapper, Daniel

  1. By: Juan Mendoza; Andrés Rosas
    Abstract: This paper investigates the effect of the three-point rule on the average number of goals scored per match and the prevalence of ties in Argentine professional soccer. We review the existing theoretical models to analyze the impact of the three-point rule on the offensive and defensive strategies of a team and on average scoring. We then use a dataset of more than 3,500 observations. We exploit the variability in the application of the three-point rule in the Argentine league. In particular, we take advantage of the fact that the three-point rule was not effectively employed in the construction of the ranking used to decide which teams will be relegated to the second-division tournament. Indeed, we use the teams facing relegation as our control group, and the other teams, not facing relegation, as our treatment group. Our identifying assumption is that the behavior of teams in risk of relegation continued to be governed by the two-point rule and was not influenced by the three-point rule. We include fixed effects for each team in each tournament and control for the quality of the rival.. Our results indicate that the three-point rule had a statistically-significant negative effect on the number of goals scored while increasing the prevalence of ties. We relate our findings to the existing literature and draw some preliminary conclusions.
    Keywords: Soccer, Three-Point Rule, Offensiveness, Defensiveness.
    JEL: J4 J63 L83
    Date: 2015–01–16
  2. By: Hartmann, Wesley R. (Stanford University); Klapper, Daniel (Humboldt University Berlin)
    Abstract: We explore the effects of television advertising in the setting of the NFL's Super Bowl telecast. The Super Bowl is the largest advertising event of the year and is well suited for measurement. The event has the potential to create significant increases in "brand capital" because ratings average over 40 percent of households and ads are a focal point of the broadcast. Furthermore, variation in exposures is exogenous because a brand cannot choose how many impressions it receives in each market. Viewership is determined based on local preferences for watching the two competing teams. With this significant and exogenous variation in Super Bowl advertising exposures we test whether advertisers' sales are affected accordingly. We run our analysis using Nielsen ratings and store level sales data in the beer and soda categories. We find that Super Bowl ads generate significant increases in revenue and volume per household. However, when two major brands both advertise, they erode most of the gain. The largest effects occur during weeks with spikes in other sports events suggesting that placing an advertisement in the most watched sporting event of the year generates associations with sports more broadly. We test this using local viewership data of NCAA basketball in the second month after the Super Bowl and find strong evidence that advertising can generate or augment complementarities between a brand and the ways potential consumers spend their time.
    Date: 2014–06

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