An examination of underlying consumer demand and sport pricing using secondary market data

Drayer, Joris; Rascher, Daniel A.; McEvoy, Chad D.

doi:10.1016/j.smr.2012.03.005

Cited by 30 publications

(49 citation statements)

References 32 publications

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“…The present work is based on mathematical models of DP, which operate from the perspective of demand in the market [51]. A consumer is assumed to have a limited budget and he/she will try to maximize his utility based on his preferences.…”

Section: Modelmentioning

confidence: 99%

Capacity Allocation of Game Tickets Using Dynamic Pricing

Dutta

2019

Data

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This study examines a pricing approach that is applicable in the field of online ticket sales for game tickets. The mathematical principle of dynamic programing is combined with empirical data analysis to determine demand functions for university football game tickets. Based on the calculated demand functions, the application of DP strategies is found to generate more revenues than a fixed price strategy. The other important result is the capacity distribution of tickets according to the football game intensity. Prior studies have shown that it is sometimes more profitable or football clubs to allocate a share of tickets to a retailer and earn a commission based on the sales, rather than selling the entire capacity of tickets by itself. This paper finds that in a high intensity game, where the demand is generally high, it is optimal for the club to sell all tickets by itself. Whereas, for less popular games, where there is considerable fluctuation in demand, the capacity allocation problem for maximized revenues from ticket sales, becomes a harder optimization challenge for the club. According to DP optimization, when the demand for tickets is relatively low, it is optimal for the club to retain 20–40% of the tickets and the rest of the capacity should be sold to online retailers. In the real world, this pricing technique has been used by football clubs and thus the secondary market online retailers like Ticketmaster and Vivid Seats have become popular in the last decade.

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Section: Modelmentioning

confidence: 99%

Capacity Allocation of Game Tickets Using Dynamic Pricing

Dutta

2019

Data

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“…As described by Huck, Kirchsteiger, and Oechssler (2005), "the endowment effect describes the fact that people demand much more to give up an object than they are willing to spend to acquire it" (p. 689). On the other end of the value continuum, the concept of consumer surplus describes instances in which the purchaser values an item higher than the price paid, indicating an under-valuation of the commodity on behalf of the seller (Drayer, Rascher, & McEvoy, 2012). From a managerial perspective, understanding these discrepancies is key when making ticket-pricing decisions, as suboptimal pricing policies can have damaging effects on game attendance and revenue (Drayer & Shapiro, 2011).…”

Section: Valuementioning

confidence: 99%

“…willing to offer for game tickets (Drayer & Shapiro, 2009). In addition, research has found that fans are willing to pay premium prices for weekend games, key opponents, winning teams, and promotions (Paul & Weinbach, 2013), and that prior and current season win percentages, rankings, ticket scarcity, new stadiums, and point spreads predict secondary market prices (Drayer, Rascher, & McEvoy, 2012). Further research has supported that time-related factors have significant influence on secondary market pricing (Harrington & Treber, 2014;Dwyer, Drayer, & Shapiro, 2013).…”

Section: Secondary Market Researchmentioning

confidence: 99%

Athletic Ticket Pricing in the Collegiate Environment: An Agenda for Research

Morehead

Shapiro

Madden

et al. 2017

Journal of Intercollegiate Sport

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As pressure mounts for intercollegiate athletic departments to be more selfsufficient, administrators must respond by increasing generated revenues. Despite the importance of ticket sales in this endeavor, however, little is known about the underlying ticket pricing structures and policies used by National Collegiate Athletic Association (NCAA) institutions. Of the limited existing scholarship focused on managerial pricing decisions in the field of sport management, only professional sports settings have been addressed. Given the unique operational differences between professional and intercollegiate sport, this paper is designed to establish a foundation from which to build future research concerning the pricing of college sport tickets. The frameworks of stakeholder theory and institutional theory are proposed to ground future study in an attempt to strengthen our understanding of the process and behavior of price setting in intercollegiate athletics.

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“…The majority of these studies have focused on the behavior of sports throughout history from different perspectives: historicist [13][14][15], values of sport [6], analysis of the results of sporting events [16], participants [17], spectators/fans [18][19][20], evolution of organizations and their efficiency [21], industry and market [22][23][24] and events [25][26]. From a comprehensive analysis of the literature, we discovered that two time-based contexts predominate in these studies: the past and the present.…”

Section: Review Of the Literaturementioning

confidence: 99%

Predicting the Evolution of Sports Federation Membership: AnImportant Tool to Asses National Governing Bodies’ Strategic Planning

Camps¹,

Pappous²

2016

JSS

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Abstract:Quantifying the potential market of sports licenses is key in order for National Governing Bodies of sport (NGBs) to be able to design good strategic planning. We compared the classical methods of univariate prediction and the Autoregressive Integrated Moving Average (ARIMA) methods. Reliability of the available data was verified with the Time Series Regression with ARIMA Noise, Missing and Outliers (TRAMO) method, and the existence of a trend was verified using Daniel's test. For the purposes of this study-the researches collected and analysed secondary data from a 40-year series in 45 sports in Spain covering a very long period of time in a variety of sport disciplines. The study shows that, with the available data, short-and mid-term forecasting is possible in a number of sports, but not in all of them. It also proves that Holt's classical method of exponential smoothing is the one that yields best results. Golf, Basketball, Athletics and Hunting NGB show worrying prospects of decline levels and need an immediate change in the strategic plans. Other than for forecasting the evolution of athletes in the mid-term in order to improve strategic planning in NGBs, the present findings can be useful for public authorities to define their aid policies for NGBs, and they can also help companies in the industry to anticipate market developments.

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An examination of underlying consumer demand and sport pricing using secondary market data

Cited by 30 publications

References 32 publications

Capacity Allocation of Game Tickets Using Dynamic Pricing

Capacity Allocation of Game Tickets Using Dynamic Pricing

Athletic Ticket Pricing in the Collegiate Environment: An Agenda for Research

Predicting the Evolution of Sports Federation Membership: AnImportant Tool to Asses National Governing Bodies’ Strategic Planning

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