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Willingness to Pay for Soccer Player Development in the United States

Author

Listed:
  • O. Ashton Morgan
  • John C. Whitehead
Abstract
As evidenced by the viewing figures for the 2014 FIFA World Cup, U.S. interest in soccer and watching the National Team compete is growing. American households’ willingness to pay (WTP) for soccer player development is measured using the contingent valuation method and compared to the cost of player development. Data are drawn from two national surveys administered before and after the 2014 World Cup event. In the surveys, individuals are faced with two stated preference decisions: first, whether they perceive that additional funding for player development will improve the chances of the National Team’s performance at the 2018 World Cup and second, whether they are willing to pay an annual household tax to fund the program. We use a bivariate probit model to account for correlation between the two decisions. WTP estimates indicate that the intangible benefits of player development are roughly twice the cost, justifying the investment from a strictly benefit-cost perspective. Also, WTP is temporally reliable with no statistical difference in ex ante and ex post estimates. Key Words: Soccer, Willingness to Pay, Contingent Valuation Method

Suggested Citation

  • O. Ashton Morgan & John C. Whitehead, 2015. "Willingness to Pay for Soccer Player Development in the United States," Working Papers 15-03, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:15-03
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1503.pdf
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    References listed on IDEAS

    as
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    Blog mentions

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    1. MTurk costs more (so what?)
      by John Whitehead in Environmental Economics on 2015-06-24 19:45:29
    2. "A Pigovian tax solution (for now) for review/publication of studies that use M Turk samples"
      by John Whitehead in Environmental Economics on 2015-08-17 18:32:00

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    Cited by:

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    2. 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.
    3. Francisco Tomás González-Fernández & Alfonso Castillo-Rodríguez & Lorena Rodríguez-García & Filipe Manuel Clemente & Ana Filipa Silva, 2022. "A Data Analytics Approach to Assess the Functional and Physical Performance of Female Soccer Players: A Cohort Design," IJERPH, MDPI, vol. 19(15), pages 1-14, July.
    4. Pamela Wicker & Dennis Coates, 2018. "Flame Goes Out: Determinants Of Individual Support At The 2024 Hamburg Games Referendum," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 302-317, April.
    5. 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.
    6. 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.

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    Keywords

    soccer; willingness to pay; contingent valuation method;
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