All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Matthias Peiss and Roland Kirstein
 
''Optimal ticket pricing in professional sports: a social identity approach''
( 2014, Vol. 34 No.4 )
 
 
A frequently observed phenomenon in professional sports is apparent underpricing of tickets. The concept of social identity may explain this pricing behavior without giving up the assumption of profit-maximizing behavior. Repeated match attendance increases spectators' identification with the team and their willingness to pay for attendance. In this paper, we set up a model to analyze a profit-maximizing team's optimal pricing decision including such spectator identification. Conditions are derived under which incentives to underprice arise.
 
 
Keywords: underpricing, spectator sports, ticket sales, social identity
JEL:
D4 - Market Structure and Pricing: General
 
Manuscript Received : Oct 24 2014 Manuscript Accepted : Oct 24 2014

  This abstract has been downloaded 523 times                The Full PDF of this paper has been downloaded 104274 times