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Uncertainty of outcome versus reputation: Empirical evidence for the First German Football Division

Author

Listed:
  • Georg Stadtmann

    (Wissenschaftliche Hochschule für Unternehmensführung - Otto Beisheim Graduate School of Management, Burgplatz 2, D-56179 Vallendar)

  • Dirk Czarnitzki

    (Centre for European Economic Research , P.O. Box 10 34 43, D-68304 Mannheim)

Abstract

This paper deals with the determinants of match attendance in the German premier football league. We analyse uncertainty measures of match outcome as well as uncertainty of championship outcome. Furthermore, we incorporate supporter clubs, reputation, performance measures and weather effects as explanatory variables. Due to the limited capacity of the stadiums, observations on attendance are right censored in our sample. While other authors use the ordinary least squares estimator, which is inconsistent in this framework, we take this restriction implicitly in consideration by using a Tobit model. In conclusion, we show that reputation and goodwill are more important for attendance levels than the thrill of outcome uncertainty.1

Suggested Citation

  • Georg Stadtmann & Dirk Czarnitzki, 2002. "Uncertainty of outcome versus reputation: Empirical evidence for the First German Football Division," Empirical Economics, Springer, vol. 27(1), pages 101-112.
    • Handle: RePEc:spr:empeco:v:27:y:2002:i:1:p:101-112
    Note: received: September 1999/Final version received: January 2001
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    References listed on IDEAS

    as
    1. Amemiya, Takeshi, 1973. "Regression Analysis when the Dependent Variable is Truncated Normal," Econometrica, Econometric Society, vol. 41(6), pages 997-1016, November.
    2. Peel, David A & Thomas, Dennis A, 1988. "Outcome Uncertainty and the Demand for Football: An Analysis of Match Attendances in the English Football League," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(3), pages 242-249, August.
    3. Peel, David A & Thomas, Dennis A, 1992. "The Demand for Football: Some Evidence on Outcome Uncertainty," Empirical Economics, Springer, vol. 17(2), pages 323-331.
    4. Peter J. Sloane, 2000. "The Regulation of Professional Team Sports," IASE Conference Papers 0003, International Association of Sports Economists.
    5. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
    6. Pope, Peter F & Peel, David A, 1989. "Information, Prices and Efficiency in a Fixed-Odds Betting Market," Economica, London School of Economics and Political Science, vol. 56(223), pages 323-341, August.
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    More about this item

    Keywords

    Consumer Demand · Team Sports · Tobit Estimator;

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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