|Take Me Out to the Ball Game, But Not on the Weekends|
|Subject||Variable Pricing to Increase Profitability|
|Topic||Supply and Demand; Elasticity; Utility and Consumer Choice|
|Key Words||Supply, Demand, Variable Pricing, Anticipated Demand|
Over the last 9 years, average attendance at major-league baseball games has fallen from 31,000 to 26,600 a game. As a result, baseball teams are beginning to use variable pricing - charging different prices for the same seats at different times - in an attempt to increase revenues. Ticket prices will increase for high-demand games, such as on weekends, against marquee teams, or on special occasions, such as Opening Day. Baseball team executives are beginning to think of themselves more as entertainers (at least at the box office), and find themselves trying to price accordingly.
A big issue at stake, though, is the impact of this variable pricing on season-ticket holders. Decisions on how to treat their repeat customers with variable pricing vary from team to team. Some teams included them in the variable price increases, and others did not, seeing it as a way of giving them a reason to re-subscribe.
(Updated September 10, 2003)
|Source||John Morrell. "How Much for Tickets? You Need a Scorecard." The New York Times. June 8, 2003.|
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