“Pricing Baseball Tickets Like Airline Seats”
Posted by Joe Cannon
We are all familiar, at least with the concept, of dynamic (or time-based) pricing. Airlines are the most common example, raising and lowering fares over time on a particular flight to optimize the number of passengers and profits. Many services have very low marginal costs — for example it costs very little to add one more passenger to a flight that is not full. Well now a recently minted Economics PhD has developed models to do this for sports tickets — and the San Francisco Giants (baseball) are using it to adjust prices. It is nice to give an example that is not from the airline industry. Check out. “Pricing Baseball Tickets Like Airline Seats” (Bloomberg BusinessWeek, May 20, 2010).
Tags: Sports
This entry was posted on Tuesday, June 8th, 2010 at 1:04 pm and is filed under Price, Service. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.