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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
D4 - Market Structure and Pricing: General
Manuscript Received : Oct 24 2014 Manuscript Accepted : Oct 24 2014

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