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Does it pay to win the Stanley Cup?

June 25, 2015 Comments off

Does it pay to win the Stanley Cup? (PDF)
Source: University of Windsor

Yes, it does indeed pay to win the Stanley Cup (SC). Professional sports offer a unique opportunity to examine the relationship between a player’s salary and their performance. Salary statistics have become widely available and enable individual performance scrutiny in relation to remuneration level. There is an extensive literature explaining which factors influence the players’ salary in the National Hockey League (NHL), using data sets from different seasons and including various performance indicators. Although much is known about salary and performance in professional hockey, there is a lack of understanding and empirical evidence of the pecuniary value of winning the Stanley Cup (SC) – the trophy awarded annually to the NHL playoff champion and the ultimate prize in professional hockey. Our empirical analysis suggests that winning the Stanley cup the season prior to signing a new contract earns players a 19% wage premium on their next contract.
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Game, Set, and Match: Do Women and Men Perform Differently in Competitive Situations?

April 26, 2015 Comments off

Game, Set, and Match: Do Women and Men Perform Differently in Competitive Situations? (PDF)
Source: Institute for the Study of Labor

This paper analyzes potential gender differences in competitive environments using a sample of over 100,000 professional tennis matches. We focus on two phenomena of the labor and sports economics literature: the hot-hand and clutch-player effects. First, we find strong evidence for the hot-hand (cold-hand) effect. Every additional win in the most recent ten Tour matches raises the likelihood of prevailing in the current encounter by 3.1 (males) to 3.3 percentage points (females). Second, top male and female players are excelling in Grand Slam tournaments, arguably the most important events in tennis. For men, we also find evidence for top players winning more tie-breaks at Grand Slams. Overall, we find virtually no gender differences for the hot-hand effect and only minor distinctions for the clutch-player effect.

It’s More than Just a Game: The Effect of Core and Supplementary Services on Customer Loyalty

March 24, 2015 Comments off

It’s More than Just a Game: The Effect of Core and Supplementary Services on Customer Loyalty
Source: Cornell School of Hotel Administration, Center for Hospitality Research

All service providers seek to provide a comprehensive experience for their customers, with the goal of cementing customer loyalty and encouraging future purchases. In most services, we can identify core aspects (e.g., a good night’s sleep at a hotel) and supplementary aspects (e.g., concierge and valet services). For professional sports, the core service is the sporting contest itself, but many other supplementary services may also be included. We use a comprehensive dataset of over 7,000 patrons of a major professional sport in the United States to determine how customers’ satisfaction with core and supplementary services influence their intent to repeat a ticket purchase. We find that satisfaction with both core and supplementary services are important for loyal customers, but first-time customers tend to focus only on core service satisfaction when considering whether to purchase another ticket. One implication of this study is that firms should focus on their customers’ full experience. Firms must first focus on their core services and then augment them appropriately with supplementary services.

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Superbowl Ads

March 6, 2015 Comments off

Superbowl Ads
Source: Stanford Graduate School of Business

We explore the effects of television advertising in the setting of the NFL’s Super Bowl telecast. The Super Bowl is the largest advertising event of the year and is well suited for measurement. The event has the potential to create significant increases in “brand capital” because ratings average over 40 percent of households and ads are a focal point of the broadcast. Furthermore, variation in exposures is exogenous because a brand cannot choose how many impressions it receives in each market. Viewership is determined based on local preferences for watching the two competing teams. With this significant and exogenous variation in Super Bowl advertising exposures we test whether advertisers’ sales are affected accordingly. We run our analysis using Nielsen ratings and store level sales data in the soda and beer categories. We find that Super Bowl ads can generate significant increases in revenue and volume per household. However, when two major soda brands both advertise, they receive no profit gain to offset their advertising investments. Exploring the mechanism behind the ad effects, we find that Super Bowl ads build an association between the brand and viewership of sports more broadly. The competitive effects suggest that two competing brands cannot however capture the same association. In beer, Budweiser has purchased exclusive advertising rights in the Super Bowl for more than 20 years and appears to be receiving long run returns from their ownership of a sports association.

Success is Something to Sneeze at: Influenza Mortality in Regions that Send Teams to the Super Bowl

February 9, 2015 Comments off

Success is Something to Sneeze at: Influenza Mortality in Regions that Send Teams to the Super Bowl (PDF)
Source: Tulane University

Using county-level Vital Statistics of the United States data from 1974-2009, we employ a differences-in-differences framework comparing influenza mortality rates in Super Bowl-participating counties to non-participants. Having a local team in the Super Bowl causes an 18% increase in influenza deaths for the population over age 65, with evidence suggesting one mechanism is increased local socialization. Effects are most pronounced in years when the dominant influenza strain is more virulent, or when the Super Bowl occurs closer to the peak of influenza season. Mitigating influenza transmission at gatherings related to large spectator events could have substantial returns for public health.

Are attractive female tennis players more successful? An empirical analysis

January 28, 2015 Comments off

Are attractive female tennis players more successful? An empirical analysis
Source: Institute for Organisational Economics

This study examines whether there is a relationship between physical attractiveness of professional female tennis players ranked in the top 100 of the tennis world ranking in 2011 and their sporting success in terms of earned prize money and winning probabilities. OLS-regressions reveal a significantly positive relationship between physical attractiveness and sporting success in terms of prize money for the years 2012 and 2013 as well as for the whole career. Furthermore, a logit-model shows that the larger the difference in physical attractiveness is, the higher is the winning probability for the more attractive player in individual matches.

Survey | Ahead of Super Bowl, Nearly Three-in-Ten Americans Support Lifetime Ban for Football Players Who Commit Domestic Violence

January 26, 2015 Comments off

Survey | Ahead of Super Bowl, Nearly Three-in-Ten Americans Support Lifetime Ban for Football Players Who Commit Domestic Violence
Source: Public Religion Research Institute

Nearly one-in-three Americans (29%) say that a football player who has been found guilty of domestic violence should be permanently banned from playing in the NFL. Nearly 6-in-10 (59%) Americans say that a player who has been found guilty of domestic violence should be temporarily suspended but allowed to return. Nearly 1-in-10 (8%) Americans say the NFL should take no formal action against such a player.

Although there are no statistically significant differences between sports fans’ and non-sports fans’ support for a permanent ban for players convicted of domestic violence (28% vs. 32%), there are notable differences among sports fans by gender. Thirty-six percent of female sports fans support banning a player from the NFL for life, compared to 21% of male sports fans.

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