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An Analysis of Consumer Response to Corruption: Italy's Calciopoli Scandal
Author(s) -
Buraimo Babatunde,
Migali Giuseppe,
Simmons Robert
Publication year - 2016
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12094
Subject(s) - league , stadium , football , punishment (psychology) , revenue , language change , fell , advertising , demographic economics , economics , business , political science , psychology , social psychology , law , geography , finance , art , mathematics , physics , geometry , literature , cartography , astronomy
The Calciopoli episode affecting Italian football in the 2005–6 season serves as an opportunity for an empirical investigation into consumer (fan) behavior, following league‐imposed punishments on clubs whose officials were found guilty of corrupt practices. Using a difference‐in‐differences estimation method, we find that home attendances for convicted teams fell by around 16%, relative to those clubs not subject to punishment. We show further that the fall in attendances resulted in non‐trivial gate revenue reductions. Our results suggest that a sizeable number of fans of the punished clubs were subsequently deterred from supporting their teams inside the stadium.