Leví Pérez
Víctor Puente
and Plácido Rodríguez

The uncertainty of outcome hypothesis is revisited in this paper in the context of a more general demand analysis of free-to-air soccer games broadcast in Spain. Apart from analyzing some expected determinants of television viewers’ aggregate behavior, such as the quality of the game and the type of match broadcast, and other seasonal effects, an alternative approach based on bettor predictions of the possible outcome of a particular match is used to test this hypothesis. The empirical findings show that expected uncertainty of outcome may either have no effect on (soccer) TV audiences or...Read more

Stefan Kesenne

In this paper, we derive, based on a simple microeconomic model, under what conditions free-TV can more profitable than pay-TV in sports broadcasting. The most important factors here are the level, not the elasticity, of the demand for televised sports, as well as the advertisers’ willingness to pay. Also the spectators’ aversion to interruptions for advertising can play a role.Read more