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On the Price and Income Sensitivity of the Demand for Sports: Has Linder’s Disease Become More Serious?

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  • Knut Løyland

    (Telemark Research Institute, loyland@tmforskbo.no)

  • Vidar Ringstad

    (Telemark Research Institute)

Abstract

This study presents some results for household demand for sports in Norway. The results provide a firm basis for concluding that the demand for sports is income elastic. However, because both sports events and own sports activities are time-consuming, they may be subject to Linder’s disease, which is due to a shadow value of leisure increasing with income. This implies a negative bias in the income elasticity as estimated by us. The calculations suggest that the bias has become bigger in the period analyzed, that is, Linder’s disease has become more serious for sports over time.

Suggested Citation

  • Knut Løyland & Vidar Ringstad, 2009. "On the Price and Income Sensitivity of the Demand for Sports: Has Linder’s Disease Become More Serious?," Journal of Sports Economics, , vol. 10(6), pages 601-618, December.
    • Handle: RePEc:sae:jospec:v:10:y:2009:i:6:p:601-618
    DOI: 10.1177/1527002509334231
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    References listed on IDEAS

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    Cited by:

    1. Kirstin Hallmann & Cristina Muñiz Artime & Christoph Breuer & Sören Dallmeyer & Magnus Metz, 2017. "Leisure participation: modelling the decision to engage in sports and culture," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(4), pages 467-487, November.
    2. Haoatai, Heinarii & Monypenny, Richard, 2011. "Export demand for Tahitian black pearls," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 19, pages 1-16.
    3. Thibaut, Erik & Eakins, John & Vos, Steven & Scheerder, Jeroen, 2017. "Time and money expenditure in sports participation: The role of income in consuming the most practiced sports activities in Flanders," Sport Management Review, Elsevier, vol. 20(5), pages 455-467.
    4. Liam J.A. Lenten, 2011. "Long-run Trends and Factors in Attendance Patterns in Sport: Australian Football League, 1945–2009," Chapters, in: Samuel Cameron (ed.), Handbook on the Economics of Leisure, chapter 17, Edward Elgar Publishing.
    5. Sofia Izquierdo Sanchez & Caroline Elliott & Robert Simmons, 2016. "Substitution between leisure activities: a quasi-natural experiment using sports viewing and cinema attendance," Applied Economics, Taylor & Francis Journals, vol. 48(40), pages 3848-3860, August.
    6. Jung-Sup Bae & Weisheng Chiu & Sang-Back Nam, 2021. "Sport Fans’ Price Sensitivity Based on Loyalty Levels: A Case of Korean Professional Baseball League," Sustainability, MDPI, vol. 13(6), pages 1-13, March.
    7. Brad R. Humphreys & Jane E. Ruseski & Jie Yang, 2020. "Household consumption decisions: will expanding sports betting impact health?," Review of Economics of the Household, Springer, vol. 18(4), pages 1079-1100, December.
    8. Jaume García & Fernando Lera-López & María José Suárez, 2011. "Estimation of a Structural Model of the Determinants of the Time Spent on Physical Activity and Sport," Journal of Sports Economics, , vol. 12(5), pages 515-537, October.

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