Modeling Residents’ Mega Sport Event Social Value: Integrating Social and Economic Mechanisms

Abstract

Social value is the difference between monetized social impacts and related economic investments. Stimulating positive social value is a leading concern and focus for sport event stakeholders. However, insights on this socioeconomic phenomenon have concentrated on social or economic mechanisms, not both, and are siloed to host city residents, largely overlooking nonhost city residents central to events. Thus, we integrated social and economic mechanisms to examine host city and nonhost city residents’ mega sport event social value. Data from 1,880 Canadians revealed varying social values (Vancouver and Provincial = negative; Venue-City = neutral; National = positive). Applying a reverse contingent valuation method, findings confirmed the need to integrate (monetized) social and economic mechanisms to calculate social value. Testing an augmented social exchange theory model, findings highlight residents’ perceptual ambivalence to social impacts and the importance of income to estimate social value. Stakeholders should effectively leverage events for social impacts and reconsider event public funding allocation policies.