Premium
A Spatial Cross–Sectional Analysis of Elasticity of Demand for Soccer
Author(s) -
Forrest David,
Simmons Robert,
Feehan Patrick
Publication year - 2002
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/1467-9485.00235
Subject(s) - price elasticity of demand , economics , elasticity (physics) , monopoly , football , microeconomics , econometrics , profit (economics) , geography , materials science , archaeology , composite material
Several studies estimate the demand for watching English professional football (soccer) as highly inelastic, a puzzling result given that clubs appear to possess a degree of monopoly power. We discuss weaknesses in earlier studies and offer an alternative method of assessing elasticity based on travel costs of spectators living different distances from the grounds. We find that elasticity varies across the 20 senior clubs for which data were available but in almost every case demand is more elastic than reported in the existing literature and pricing policy appears therefore to be more orientated towards profit maximisation than previously thought.