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PERCEIVED GAME UNCERTAINTY, SUSPENSE AND THE DEMAND FOR SPORT
Author(s) -
Pawlowski Tim,
Nalbantis Georgios,
Coates Dennis
Publication year - 2018
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12462
Subject(s) - closeness , economics , outcome (game theory) , perception , preference , microeconomics , bridging (networking) , psychology , econometrics , computer science , mathematics , mathematical analysis , neuroscience , computer network
This study tries bridging between different behavioral economic explanations for the lack of support of the uncertainty of outcome hypothesis in spectator sports. We test a measure of perceived game uncertainty that is comparable to objective measures frequently tested in the literature. Econometric results suggest that fans do not perceive closeness of a game differently than how economists have tended to measure it. However, fans' perceptions of suspensefulness are distinct from their perceptions of game uncertainty. Moreover, the finding that fans' preferences for game uncertainty are dominated by loss aversion also emerges—independently of fanship status—in our stated‐preference setting. ( JEL L83, D12, Z2)