IDEAS home Printed from https://ideas.repec.org/p/apl/wpaper/15-05.html
   My bibliography  Save this paper

Willingness-To-Pay For Sporting Success of Football Bundesliga Teams

Author

Listed:
  • Pamela Wicker
  • John C. Whitehead
  • Bruce K. Johnson
  • Daniel S. Mason

Abstract

This study shows that fans and people living in the region of 28 Football Bundesliga teams from all three divisions are willing to support their team financially. Survey respondents were asked for their willingness-to-pay to avoid a negative outcome (e.g., relegation) and to achieve a positive outcome (e.g., promotion). Fan bonds are applied as an alternative payment vehicle within the contingent valuation method. The results show that different factors affect the decision to support the team and the actual amount of willingness-to-pay – for attendees and non-attendees. Public goods are particularly relevant for reporting a positive willingness-to-pay. Key Words: Contingent valuation method; Bundesliga; Fan bonds; Public goods; Sporting success; Willingness-to-pay

Suggested Citation

  • Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2015. "Willingness-To-Pay For Sporting Success of Football Bundesliga Teams," Working Papers 15-05, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:15-05
    as

    Download full text from publisher

    File URL: http://econ.appstate.edu/RePEc/pdf/wp1505.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2011. "Estimating the Value of Medal Success at the 2010 Winter Olympic Games," Working Papers 11-20, Department of Economics, Appalachian State University.
    2. Kalle Seip & Jon Strand, 1992. "Willingness to pay for environmental goods in Norway: A contingent valuation study with real payment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(1), pages 91-106, January.
    3. Webley, Paul & Lewis, Alan & Mackenzie, Craig, 2001. "Commitment among ethical investors: An experimental approach," Journal of Economic Psychology, Elsevier, vol. 22(1), pages 27-42, February.
    4. Franz Hackl & Gerald Pruckner, 1999. "On the gap between payment card and closed-ended CVM-answers," Applied Economics, Taylor & Francis Journals, vol. 31(6), pages 733-742.
    5. Pablo Castellanos & Jaume García & José Manuel Sánchez, 2011. "The Willingness to Pay to Keep a Football Club in a City: How Important are the Methodological Issues?," Journal of Sports Economics, , vol. 12(4), pages 464-486, August.
    6. Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2001. "The Value of Public Goods Generated by a Major League Sports Team," Journal of Sports Economics, , vol. 2(1), pages 6-21, February.
    7. Jeff Bennett (ed.), 2011. "The International Handbook on Non-Market Environmental Valuation," Books, Edward Elgar Publishing, number 13490.
    8. Harry Walton & Alberto Longo & Peter Dawson, 2008. "A Contingent Valuation of the 2012 London Olympic Games," Journal of Sports Economics, , vol. 9(3), pages 304-317, June.
    9. Oecd, 2014. "Access Network Speed Tests," OECD Digital Economy Papers 237, OECD Publishing.
    10. Pamela Wicker & Joachim Prinz & Tassilo von Hanau, 2012. "Estimating the value of national sporting success," Sport Management Review, Taylor & Francis Journals, vol. 15(2), pages 200-210, April.
    11. Flores, Nicholas E. & Carson, Richard T., 1997. "The Relationship between the Income Elasticities of Demand and Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 287-295, July.
    12. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    13. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    14. Wicker, Pamela & Kiefer, Stephanie & Dilger, Alexander, 2013. "The value of sporting success to Germans: Comparing the 2012 UEFA Championships with the 2012 Olympics," Discussion Papers of the Institute for Organisational Economics 11/2013, University of Münster, Institute for Organisational Economics.
    15. Whitehead, John C. & Cherry, Todd L., 2007. "Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches," Resource and Energy Economics, Elsevier, vol. 29(4), pages 247-261, November.
    16. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1996. "Improving Validity Experiments of Contingent Valuation Methods: Results of Efforts to Reduce the Disparity of Hypothetical and Actual Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 72(4), pages 450-461.
    17. Douglas Noonan, 2003. "Contingent Valuation and Cultural Resources: A Meta-Analytic Review of the Literature," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 159-176, November.
    18. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2007. "Willingness To Pay For Amateur Sport And Recreation Programs," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 553-564, October.
    19. Bruce K. Johnson & Michael J. Mondello & John C. Whitehead, 2006. "Contingent Valuation of Sports," Journal of Sports Economics, , vol. 7(3), pages 267-288, August.
    20. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    21. Whitehead, John C. & Groothuis, Peter A. & Blomquist, Glenn C., 1993. "Testing for non-response and sample selection bias in contingent valuation : Analysis of a combination phone/mail survey," Economics Letters, Elsevier, vol. 41(2), pages 215-220.
    22. John Loomis, 2011. "What'S To Know About Hypothetical Bias In Stated Preference Valuation Studies?," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 363-370, April.
    23. Gennaro Bernile & Evgeny Lyandres, 2011. "Understanding Investor Sentiment: The Case of Soccer," Financial Management, Financial Management Association International, vol. 40(2), pages 357-380, June.
    24. Paul F. Whiteley (ed.), 1998. "Economic Policy," Books, Edward Elgar Publishing, volume 0, number 996.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tim F. Thormann & Pamela Wicker, 2021. "Willingness-to-Pay for Environmental Measures in Non-Profit Sport Clubs," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    2. Fatih Karanfil, 2017. "An empirical analysis of European football rivalries based on on-field performances," Sport Management Review, Taylor & Francis Journals, vol. 20(5), pages 468-482, December.
    3. Rasmus K. Storm & Tor Georg Jakobsen & Christian Gjersing Nielsen, 2020. "The impact of Formula 1 on regional economies in Europe," Regional Studies, Taylor & Francis Journals, vol. 54(6), pages 827-837, June.
    4. Geoffrey Propheter, 2019. "Estimating the Effect of Sports Facilities on Local Area Commercial Rents: Evidence From Brooklyn’s Barclays Center," Journal of Sports Economics, , vol. 20(1), pages 91-114, January.
    5. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2017. "The effect of sporting success and management failure on attendance demand in the Bundesliga: a revealed and stated preference travel cost approach," Applied Economics, Taylor & Francis Journals, vol. 49(52), pages 5287-5295, November.
    6. Christina Fischer & Rüdiger Hamm, 2019. "Football clubs and regional image [Fußballvereine und regionales Image]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(1), pages 1-23, February.
    7. Storm, Rasmus K. & Thomsen, Frederik & Jakobsen, Tor Georg, 2017. "Do they make a difference? Professional team sports clubs’ effects on migration and local growth: Evidence from Denmark," Sport Management Review, Elsevier, vol. 20(3), pages 285-295.
    8. Kaitlyn Harger & Brad R. Humphreys & Amanda Ross, 2016. "Do New Sports Facilities Attract New Businesses?," Journal of Sports Economics, , vol. 17(5), pages 483-500, June.
    9. Zeev Shtudiner & Gilad Tohar & Jeffrey Kantor, 2022. "The effect of identification with a sports team and its performance on the willingness of fans to pay for team products," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 607-615, April.
    10. Daniel Weimar & Markus Schauberger, 2018. "The impact of sporting success on student enrollment," Journal of Business Economics, Springer, vol. 88(6), pages 731-764, August.
    11. Bernd Frick & Pamela Wicker, 2018. "The Monetary Value of Having a First Division Bundesliga Team to Local Residents," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(1), pages 63-103, February.
    12. Pamela Wicker & John C Whitehead & Daniel S Mason & Bruce K Johnson, 2017. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3597-3614, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernd Frick & Pamela Wicker, 2018. "The Monetary Value of Having a First Division Bundesliga Team to Local Residents," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(1), pages 63-103, February.
    2. Pamela Wicker & John C Whitehead & Daniel S Mason & Bruce K Johnson, 2017. "Public support for hosting the Olympic Summer Games in Germany: The CVM approach," Urban Studies, Urban Studies Journal Limited, vol. 54(15), pages 3597-3614, November.
    3. J. Lucy Lee & Jeffrey D. James, 2015. "Assessing sport brand value through use of the contingent valuation method," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(6), pages 33-44, December.
    4. Pasquale Lucio Scandizzo & Maria Rita Pierleoni, 2018. "Assessing The Olympic Games: The Economic Impact And Beyond," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 649-682, July.
    5. O. Ashton Morgan & John C. Whitehead, 2018. "Willingness to Pay for Soccer Player Development in the United States," Journal of Sports Economics, , vol. 19(2), pages 279-296, February.
    6. Andy Barlow & David Forrest, 2015. "Benefits to their Communities from Small Town Professional Football Clubs," National Institute Economic Review, National Institute of Economic and Social Research, vol. 232(1), pages 18-29, May.
    7. Krystian Zawadzki, 2015. "Estimation Of The Willingness-To-Pay For Preserving The Football Arena In Gdansk," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 11(1), pages 44-55, August.
    8. Wicker, Pamela & Kiefer, Stephanie & Dilger, Alexander, 2013. "The value of sporting success to Germans: Comparing the 2012 UEFA Championships with the 2012 Olympics," Discussion Papers of the Institute for Organisational Economics 11/2013, University of Münster, Institute for Organisational Economics.
    9. Funahashi, Hiroaki & Shibli, Simon & Sotiriadou, Popi & Mäkinen, Jarmo & Dijk, Bake & De Bosscher, Veerle, 2020. "Valuing elite sport success using the contingent valuation method: A transnational study," Sport Management Review, Elsevier, vol. 23(3), pages 548-562.
    10. Wicker, Pamela & Prinz, Joachim & von Hanau, Tassilo, 2012. "Estimating the value of national sporting success," Sport Management Review, Elsevier, vol. 15(2), pages 200-210.
    11. Pawlowski, Tim & Downward, Paul & Rasciute, Simona, 2014. "Does national pride from international sporting success contribute to well-being? An international investigation," Sport Management Review, Elsevier, vol. 17(2), pages 121-132.
    12. Brad R. Humphreys & Bruce K. Johnson & John C. Whitehead, 2020. "Validity and reliability of contingent valuation and life satisfaction measures of welfare: An application to the value of national Olympic success," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 316-330, July.
    13. Pamela Wicker & Bernd Frick, 2020. "Sustainable Financing of Elite Athlete Development: An Empirical Analysis of Winter Sports in Austria," Sustainability, MDPI, vol. 12(22), pages 1-16, November.
    14. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2018. "Estimating the Value of Medal Success in the Olympic Games," Journal of Sports Economics, , vol. 19(3), pages 398-416, April.
    15. Brad R. Humphreys & Bruce K. Johnson & Daniel S. Mason & John C. Whitehead, 2011. "Estimating the Value of Medal Success at the 2010 Winter Olympic Games," Working Papers 11-20, Department of Economics, Appalachian State University.
    16. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2012. "Willingness to Pay for Downtown Public Goods Generated by Large, Sports-Anchored Development Projects: The CVM Approach," Working Papers 12-01, Department of Economics, Appalachian State University.
    17. Pamela Wicker & John C. Whitehead & Bruce K. Johnson & Daniel S. Mason, 2017. "The effect of sporting success and management failure on attendance demand in the Bundesliga: a revealed and stated preference travel cost approach," Applied Economics, Taylor & Francis Journals, vol. 49(52), pages 5287-5295, November.
    18. Huang, Haifang & Humphreys, Brad, 2012. "Do New Sports Facilities Revitalize Urban Neighborhoods? Evidence from Residential Mortgage Applications," Working Papers 2012-5, University of Alberta, Department of Economics.
    19. Oerlemans, Leon A.G. & Chan, Kai-Ying & Volschenk, Jako, 2016. "Willingness to pay for green electricity: A review of the contingent valuation literature and its sources of error," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 875-885.
    20. Daniel Weimar & Markus Schauberger, 2018. "The impact of sporting success on student enrollment," Journal of Business Economics, Springer, vol. 88(6), pages 731-764, August.

    More about this item

    Keywords

    contingent valuation method; bundesliga; fan bonds; public goods; sporting success; willingness-to-pay;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:apl:wpaper:15-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: O. Ashton Morgan (email available below). General contact details of provider: https://edirc.repec.org/data/deappus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.