More Surf,Less Bias: The Influence of Advertising in Two-Sided Sport Markets

Abstract

This paper analyzes the influence of advertisers on the results of the ASP World Tour in surfing. The close connection of the event with its sponsor, the interest of the sponsor in the outcome of the event, and the observability of the results allow to test the existence of a profit-orientated bias. In contrast to the theoretical and empirical predictions no significant influence from the sponsor over the outcome of the contest can be found. The high frequency of exposure and the observability of the decisions are the main reason for that result.

Keywords

two-sided markets bias advertisement sponsoring surfing

Get full access to this article

View all access options for this article.

References

Anderson

S. P.

, & Gabszewicz

J. J.

(2006). The media and advertising: A tale of two-sided markets. In V. A. Ginsburg & D. Throsby (Eds.), Handbook of the economics of art and culture, Volume 1 (pp. 567–614). Amsterdam, Netherlands: North-Holland.

ASP. (2012a). Judging criteria? Retrieved from http://www.aspworldtour.com/press-room/judg-ing-criteria/

ASP. (2012b). Archived World Tour rankings and results. Retrieved from http://www.aspworldtour.com/archived-world-tour-rankings-and-results/

ASP. (2013). ASP rule book. Retrieved from http://www.aspworldtour.com/pdf/asprule-book.pdf

Bertrand

, Duflo

, & Mullainathan

(2004). How much should we trust differences-indifferences estimates? The Quarterly Journal of Economics, 119, 249–275.

Boyko

R. H.

, Boyko

A. R.

, & Boyko

M. G.

(2007). Referee bias contributes to home advantage in English Premiership football. Journal of Sports Sciences, 25, 1185–1194.

Breuer

, Dietl

, Weingaertner

, & Wicker

(2012). The effect of a sports institution legal structure on sponsorship income: The case of amateur equestrian sports in Germany. International Journal of Sport Finance, 7, 340–357.

Bruine de Bruin

(2005). Save the last dance for me: Unwanted serial position effects in jury evaluations. Acta Psychologica, 118, 245–260.

Bruine de Bruin

(2006). Save the last dance II: Unwanted serial position effects in figure skating judgments. Acta Psychologica, 123, 299–311.

10.

Budzinski

, & Satzer

(2011). Sports business and multisided markets: Towards a new analytical framework? Sport, Business and Management: An International Journal, 1, 124–137.

11.

Carron

A. V.

, Loughhead

T. M.

, & Bray

S. R.

(2005). The home advantage in sport competitions: Courneya and Carron's (1992) Conceptual Framework a decade later. Journal of Sports Sciences, 23, 395–407.

12.

DellaVigna

, & Kaplan

(2007). The Fox News effect: Media bias and voting. Quarterly Journal of Economics, 122, 1187–1234.

13.

Dewenter

, & Heimeshoff

(2012). More ads, more revs? Is there a media bias in the likelihood to be reviewed? DICE Discussion Paper, 57.

14.

Dietl

, Duschl

, Franck

, & Lang

(2012). A contest model of a professional sports league with two-sided markets. Journal of Economics and Statistics, 232, 336–359.

15.

Dyck

, & Zingales

(2003). The media and asset prices. mimeo, Harvard Business School.

16.

Ellman

, & Germano

(2009). What do the papers sell? A model of advertising and media bias. The Economic Journal, 119, 608–704.

17.

Flres

R. G.

, Ginsburgh

V. A.

(1996). The Queen Elisabeth Musical Competition. How fair is the final ranking. The Statistician, 45, 97–104.

18.

Fort

, & Maxcy

(2003). Competitive balance in sports leagues: An introduction. Journal of Sports Economics, 4, 154–160.

19.

Gentzkow

, & Shapiro

J. M.

(2006). Media bias and reputation. Journal of Political Economy, 114, 280–316.

20.

Gentzkow

, & Shapiro

J. M.

(2010). What drives media slant? Evidence from U.S. daily newspapers. Econometrica, 78, 35–71.

21.

Glejser

, & Heyndels

(2001). Efficiency and inefficiency in the ranking in competitions: The case of the Queen Elisabeth Music Contest. Journal of Cultural Economics, 25, 109–129.

22.

Kaiser

, & Wright

(2006). Price structure in two-sided markets: Evidence from the magazine industry. International Journal of Industrial Organization, 24, 1–28.

23.

Mullainathan

, & Shleifer

(2005). The market for news. American Economic Review, 95, 1031–1053.

24.

Nevill

A. M.

, & Holder

R. L.

(1999). Home advantage in sport. Sports Medicine, 28, 221–236.

25.

Page

, & Page

(2010). Last shall be first: A field study of biases in sequential performance evaluation. Journal of Economic Behavior and Organization, 73, 186–198.

26.

Reuter

(2002). Does advertising bias product reviews? An analysis of wine ratings. Massachusetts Institute of Technology, Unpublished Dissertation.

27.

Reuter

, & Zitzewitz

(2006). Do ads influence editors? Advertising and bias in the financial media. Quarterly Journal of Economics, 121, 197–227.

28.

Wilson

(1977). Objectivity and effect of order of appearance in judging of synchronized swimming meets. Perceptual and Motor Skills, 44, 295–298.

29.

Zimbalist

A. S.

(2002). Competitive balance in sports leagues—An introduction. Journal of Sports Economics, 3, 111–121.