nep-spo New Economics Papers
on Sports and Economics
Issue of 2016‒12‒18
four papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Do Victories and Losses Matter? Effects of Football on Life Satisfaction By Radek Janhuba
  2. Financial Fair Play in European Football: Economics and Political Economy a Review Essay By Angelo D’Andrea; Donato Masciandaro
  3. Willingness to pay and accept for hosting Olympic Games in Germany By Bakkenbüll, Linn-Brit; Dilger, Alexander
  4. Teams as Superstars: Effort and Risk Taking in Rank-Order Tournaments for Women and Men By Mario Lackner

  1. By: Radek Janhuba
    Abstract: Every week during the autumn season, millions of Americans attend football games and even more watch the sport on TV. In addition to generating entertainment revenues, previous research has also shown that sports events lead to changes in emotions in minds of fans. This study examines whether sports infl uence the subjective well-being of the population. Using data from the Behavioral Risk Factor Surveillance System (BRFSS), an ordered logit model estimates effects of a local college football team's results on the life satisfaction of local citizens. The analysis suggests that unexpected wins have positive effects on life satisfaction. Surprisingly, no effect is found for cases of unexpected losses or outcomes which can not be labeled as surprising based on the pre-game betting market.
    Keywords: life satisfaction; sports; football;
    JEL: I18 Z29 C25
    Date: 2016–12
  2. By: Angelo D’Andrea; Donato Masciandaro
    Abstract: The 2010 UEFA Club Licensing and Financial Fair Play Regulations (FFPR) constitute an enhancement of the Club Licensing System, originally introduced in 2004-2005 with the aim to regulate the world of European football and create a more competitive and level playing field. The aim of this paper is to review the economic studies that have so far investigated the subject of Financial Fair Play Regulations, in order to provide a comprehensive overview of their pros and cons. Starting from a common assumption - that football clubs are special firms for reasons of economics and political economy - all but one of the reviewed articles criticize FFPR, by focusing on the Break-Even Requirement (BER), i.e. the principle according to which relevant expenses must be matched by relevant revenues. The critiques fall into three categories, highlighting that on the one side FFPR are likely to produce inefficiencies in labour markets, and, on the other side, they are likely to trigger unfair competition in football leagues, as well as freezing existing hierarchies in European soccer. The paper analyzes each individual critique, as well as the respective counterarguments.
    Date: 2016
  3. By: Bakkenbüll, Linn-Brit; Dilger, Alexander
    Abstract: This empirical study investigates whether and how much individuals are willing to pay for hosting Olympic Games in Germany. Moreover, it is examined for the first time what individuals are willing to accept to host Olympic Games in their own country if they do not like that. Furthermore, this study identifies determinants that influence the willingness to pay (WTP) including the willingness to accept (WTA) for hosting Olympic Games in Germany. WTP minus WTA is positively driven by the felt national importance of the German Olympic team doing well. Socio-economic factors such as gender, age and income influence this measure in significant ways, too. The extrapolation of the individual WTP and WTA shows that, in the net aggregate, the German population is willing to pay €3.57 billion for hosting the Olympic Games in Germany.
    Abstract: Diese empirische Studie untersucht, ob und wie viel Individuen zur Austragung Olympischer Spiele in Deutschland zu zahlen bereit sind. Zusätzlich wird erstmals ermittelt, was Individuen dafür verlangen würden, dass Olympische Spiele im eigenen Land stattfinden, wenn sie das eigentlich nicht wollen. Außerdem identifiziert diese Studie Determinanten, die die Zahlungsbereitschaft einschließlich der Kompensationsforderungen für die Austragung Olympischer Spiele in Deutschland beeinflussen. Die positive Zahlungsbereitschaft abzüglich Forderungen wird positiv beeinflusst von der gefühlten Bedeutung von deutschen Erfolge bei Olympia. Sozioökonomische Faktoren wie Geschlecht, Alter und Einkommen beeinflussen dieses Maß ebenfalls signifikant. Die Extrapolation der individuellen Zahlungsbereitschaften und Kompensationsforderungen ergibt, dass die deutsche Bevölkerung im Aggregat über eine Zahlungsbereitschaft von netto 3,57 Mrd. Euro für die Austragung von Olympischen Spielen in Deutschland verfügt.
    JEL: D12 D61 D62 H41 H43 L83 Z20 Z38
    Date: 2016
  4. By: Mario Lackner
    Abstract: This article analyzes top-level basketball competitions and measures the effect of superstar presence on effort provision in rank-order tournaments. I extend the previous literature to team competitions for male and female teams, as well as different institutional settings over a long period of time. In addition, I analyze risk-taking behavior in the context of superstar effects. The results of the empirical analysis suggests that the level of superstar dominance is crucial for the observed effects. While there is an significant and sizeable effort reducing superstar effect, less (little) dominance by the superstar seems to be result in a positive peer effects.
    Keywords: uperstar effects, rank-order tournaments, incentives, effort, risk-taking
    JEL: D70 M51 J01
    Date: 2016–12

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