nep-spo New Economics Papers
on Sports and Economics
Issue of 2020‒12‒14
one paper chosen by
Humberto Barreto
DePauw University

  1. Spatial Attendance Spillover in the European Football Leagues By Young Hoon Lee; Hayley Jang; Yongcheol Shin

  1. By: Young Hoon Lee (Department of Economics, Sogang University, Seoul); Hayley Jang (Department of Economics, Sangji University); Yongcheol Shin (Department of Economics, University of York, York)
    Abstract: We analyze spatial attendance spillover applying spatial panel-data models to the Italian Football League data from 2001/2002 to 2016/2017. We use numerical simulations to examine the potential impact of such spillover on the competitive balance; spillover implies an interaction between the two exclusive markets that are the principal sources of competitive imbalance. Our numerical simulations suggest that spatial spillover may create attendance variations across member teams, thus affecting the competitive balance. The final outcome depends on the spillover sign, the network structure, and the market size distribution. Next, our QML empirical results suggest that no significant spatial interaction was evident in earlier seasons (2001 to 2013), but modest spatial spillover was in play from 2013 to 2016. Combining the empirical results with numerical simulations, we find that a recent, slightly positive spillover may modestly compromise the competitive balance (by 5 to 10%).
    Keywords: Spatial Spillover; Attendance; Competitive Balance; Italian Football League
    JEL: L83 L80 Z20
    Date: 2020

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