Impact of Overwhelming Joy on Consumer Demand

Abstract

In this article, the authors identify the period following a Soccer World Cup victory as a period of overwhelming joy for the winning country, and they test the impact of a World Cup victory on the demand for soccer in this country. After controlling for the main determinants of attendance, the authors find that consumer demand has positively, significantly, and durably shifted in France following the 1998 World Cup. They also show that the rise in demand is stronger in the nine cities that hosted the World Cup and that the World Cup effect persists for percentage attendance after they control for season ticket holders. Finally, the authors find supportive evidence to their claim that exceptional performance improves sport popularity when analyzing soccer attendance in several control countries, attendance for a potential substitute for soccer in France, and other episodes of overwhelming joy.

Keywords

demand for sports externalities

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