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, for musical groups that appeal to a more fragmented audience, 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 European University Institute in its series Economics Working Papers with number ECO2009/04.
Date of creation: 2009
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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.
- 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.
- Pascal Courty & Mario Pagliero, 2009. "The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry," Carlo Alberto Notebooks 105, Collegio Carlo Alberto.
- 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
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