Economic analysis of the 12th man: should the fans be paid?
Abstract
The paper studies the pricing of tickets by considering the tradeoff between maximizing match day revenues, through high prices, and maximizing the support of the most demonstrative fans, through low prices, in order to increase the number of victories, hence the revenue from TV rights. We model the role of effusive spectators and show that, in a competitive equilibrium, it may be optimal for the club to subsidize their presence in order to take full advantage of the 12th man effect.
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