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on Sports and Economics |
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Issue of 2011‒07‒21
four papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Oliver Budzinski (Department of Environmental and Business Economics, University of Southern Denmark); Janina Satzer (Department of Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | Despite still being younger than a decade, the theory of multisided markets has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated through externalities. Examples include payment systems, matching agencies, commercial media, and software platforms. However, professional sports mar-kets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. This conceptual paper con-tributes to filling this gap by describing the platform elements of professional suppliers of sports events and conceptually outlining issues where an applica-tion of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as management strategies to reinforce positive externalities among customer groups and alleviate negative ones. The authors would like to thank Anna Lund Jepsen and Nadine Lindstädt for valuable comments on earlier versions of this paper as well as Barbara Güldenring and Liz Patti for editorial assistance. A substantially shorter version of this paper will be published in Sports, Business, Management: An International Journal in 2011. |
| Keywords: | sports economics, sports management, two-sided markets, multisided platforms, professional sports business, pricing strategies, broadcasting rights |
| JEL: | L83 L82 L13 M21 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:109&r=spo |
| By: | Gabriel M. Ahfeldt; Georgios Kavetsos |
| Abstract: | Prestigious sports facilities increasingly feature among the most expensive development projects worldwide. Considerable public funds are often committed based on expected neighbourhood effects. This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade - the New Wembley and the Emirates stadium in London, UK. Evidence suggests positive stadium externalities, which are large compared to construction costs. Notable anticipation effects are found immediately following the announcement of the final stadium plans. Our results suggest that stadium architecture may play an important role in promoting positive spillovers to the neighbourhood. |
| Keywords: | Property prices, stadium impact |
| JEL: | R53 R58 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0087&r=spo |
| By: | Wladimir Andreff (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | Avec la mondialisation économique du sport, l'audience de l'événement sportif est soumise à incertitude et à une attractivité peu prédictible. L'une et l'autre peuvent être réduites par des régulations : régulation des ligues sportives professionnelles, régulation par changement des règles sportives, régulation financière des compétitions sportives. Le marché du travail des talents sportifs est en revanche dérégulé. |
| Keywords: | mondialisation ; régulation ; économie du sport ; événement sportif ; ligues sportives ; marché du travail |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00606043&r=spo |
| By: | Liu, Xiaodong; Patacchini, Eleonora; Zenou, Yves |
| Abstract: | We develop two different social network models with different economic foundations. In the local-aggregate model, it is the sum of friends' efforts in some activity that affects the utility of each individual while, in the local-average model, it is costly to deviate from the average effort of friends. Even though the two models are fundamentally different in terms of behavioral foundation, their implications in terms of Nash equilibrium are relatively close since only the adjacency (social interaction) matrix differs in equilibrium, one being the row-normalized version of the other. We test these alternative mechanisms of social interactions to study peer effects in education, sport and screen activities for adolescents in the United States using the AddHealth data. We extend Kelejian's (2008) J test for spatial econometric models helping differentiate between these two behavioral models. We find that peer effects are not significant for screen activities (like e.g. video games). On the contrary, for sport activities, we find that students are mostly influenced by the aggregate activity of their friends (local-aggregate model) while, for education, we show that both the aggregate performance at school of friends and conformism matter, even though the magnitude of the effect is higher for the latter. |
| Keywords: | conformism; econometrics of networks; peer effects; Social networks |
| JEL: | A14 D85 Z13 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8477&r=spo |