The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry
AbstractConcert tickets can either be sold at a single price or at multiple prices corresponding to different seating categories. We study the relationship between price discrimination and revenue by examining variations in the number of seating categories across concert, tour, artist, location, and time. Offering multiple seating categories leads to revenues that are approximately 5 percent higher than with single price ticketing. The return to price discrimination is higher in markets with more heterogeneous demand, in smaller venues and in more competitive markets. The return of increasing from three to four categories of seating is about half that of increasing from one to two.
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Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 105.
Length: 42 pages
Date of creation: 2009
Date of revision:
Price discrimination; return to price discrimination; second degree price discrimination;
Other versions of this item:
- Pascal Courty & Mario Pagliero, 2012. "The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 359-369, February.
- Pascal Courty & Mario Pagliero, 2009. "The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry," Economics Working Papers ECO2009/04, European University Institute.
- Courty, Pascal & Pagliero, Mario, 2009. "The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry," CEPR Discussion Papers 7120, C.E.P.R. Discussion Papers.
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-COM-2009-03-28 (Industrial Competition)
- NEP-IND-2009-03-28 (Industrial Organization)
- NEP-MIC-2009-03-28 (Microeconomics)
- NEP-MKT-2009-03-28 (Marketing)
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