Pricing the priceless: Monetary valuation of non-market goods and services

Publication: Book/ReportDissertations


Assigning monetary values to seemingly priceless goods and services is worthwhile for various reasons. Monetary values allow having a common unit of measurement and therefore more objective decision-making in a variety of contexts (Clark & Oswald, 2002). Monetary valuation allows to, first, establish a link between changes in the quality or quantity of a non-market good or service and the stated or observed behavior of individuals and, second, express this link in monetary units. The present cumulative thesis begins by providing a comprehensive review and discussion of non-market valuation approaches within the field of sports economics. The subsequent four chapters apply and advance various empirical approaches in three different contexts. Section 2 provides a comprehensive conceptual and empirical comparison of different valuation approaches focusing specifically on voluntary work. Section 3 estimates the monetary value of coaching in German non-profit sports clubs applying an output-based approach. Using the contingent valuation method the willingness-to- pay of the beneficiaries of voluntary coaching is estimated. Results of the double hurdle model indicate that determinants for the decision to contribute and the amount individuals are willing-to-pay differ. Section 4 estimates the monetary value of social capital by considering its multidimensional nature. The compensation variation method is applied to a large cross-sectional dataset. The findings indicate that social capital has significant value to individuals. Section 5 estimates the monetary value of sports and physical activity applying the compensation variation method. Similar to Section 4 a generalized ordered response model is estimated to take the heterogeneity in the dependent variable, a single-item life satisfaction measure, into account. Evidently, participation in sports and physical activity improves individuals’ life satisfaction and is of substantial value to individuals. The current body of literature on non-market valuation techniques is extended by advancing existing techniques, e.g., the subjective well-being approach, as well as applying a novel approach, i.e., an output-based approach to value voluntary work. All sections included in this thesis represent applications of various valuation methods to the field of sport.
Original languageEnglish
Place of PublicationKöln
PublisherDeutsche Sporthochschule Köln
Number of pages157
Publication statusPublished - 2017


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