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Journal of Sports Economics
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Contingent Valuation of Sports

Temporal Embedding and Ordering Effects

Bruce K. Johnson

Centre College

Michael J. Mondello

Florida State University

John C. Whitehead

Appalachian State University, whiteheadjc{at}appstate.edu

Past research measures the nonmarket benefits of sports stadiums and arenas but does not address the issues of temporal embedding or ordering effects. Temporal embedding exists if survey respondents do not differentiate between payment-period lengths and leads to unrealistic implicit discount rates. Multiple scenarios with alternative sports teams can lead to ordering effects that influence the nonmarket value of teams. This study elicits annual payments over different fixed time horizons (e.g., 5 or 10 years) for two teams in a city with a single professional sports team. We find that willingness to pay is sensitive to the length of the payment period. In one of two cases the ordering of the scenario weakly affects willingness to pay.

Key Words: nonmarket benefits of sports • contingent valuation method • temporal embedding • ordering effects

Journal of Sports Economics, Vol. 7, No. 3, 267-288 (2006)
DOI: 10.1177/1527002504272943
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