An examination of underlying consumer demand and sport pricing using secondary market data
The growth of the secondary ticket market has given sport managers a new way to understand consumer demand for tickets. In the secondary market, transaction prices and the number of transactions are highly variable and respond directly to consumer preferences, making it ripe for exploration. Using secondary market data for the NFL provided by a secondary market firm, the purpose of the current study is to understand a variety of traditional sport economics issues such as demand, consumer surplus, and pricing (in)efficiency. Results show that secondary market prices, instead of number of transactions, respond to the factors commonly associated with consumer demand. Further, the data indicate that teams may be able to sell 20,000 additional seats for each game. However, given that teams cannot easily add this number of seats (and may not want to given the NFL's blackout rule), there is approximately $260,000 in consumer surplus per game that is captured by resellers.
Volume (Year): 15 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen K. Happel and Marianne M. Jennings, 1995. "The Folly of Anti-Scalping Laws," Cato Journal, Cato Journal, Cato Institute, vol. 15(1), pages 65-80, Spring/Su.
- Alexander, Donald L. & Kern, William & Neill, Jon, 2000. "Valuing the Consumption Benefits from Professional Sports Franchises," Journal of Urban Economics, Elsevier, vol. 48(2), pages 321-337, September.
- Courty, Pascal, 2002.
"Ticket Pricing Under Demand Uncertainty,"
CEPR Discussion Papers
3443, C.E.P.R. Discussion Papers.
- Victor Matheson, 2006. "The effects of labour strikes on consumer demand in professional sports: revisited," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1173-1179.
- Karp, Larry & Perloff, Jeffrey M., 2003.
"When Promoters Like Scalpers,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt52d579j4, Department of Agricultural & Resource Economics, UC Berkeley.
- Drayer, Joris & Martin, Nathan T., 2010. "Establishing legitimacy in the secondary ticket market: A case study of an NFL market," Sport Management Review, Elsevier, vol. 13(1), pages 39-49, 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, 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," Carlo Alberto Notebooks 105, Collegio Carlo Alberto.
- 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.
- James L. Swofford, 1999. "Arbitrage, Speculation, and Public Policy Toward Ticket Scalping," Public Finance Review, , vol. 27(5), pages 531-540, September.
- Carmon, Ziv & Ariely, Dan, 2000. " Focusing on the Forgone: How Value Can Appear So Different to Buyers and Sellers," Journal of Consumer Research, University of Chicago Press, vol. 27(3), pages 360-70, December.
- Sherwin Rosen & Andy Rosenfield, 1995.
University of Chicago - George G. Stigler Center for Study of Economy and State
120, Chicago - Center for Study of Economy and State.
- Jean-Marc Falter & Christophe Perignon, 2000.
"Demand for football and intramatch winning probability: an essay on the glorious uncertainty of sports,"
Taylor & Francis Journals, vol. 32(13), pages 1757-1765.
- Falter, J.-M. & Perignon, C., 2000. "Demand for Football and Intra-Match Winning Probability: an Essay on the Glorious Uncertainty of Sports," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 2000.15, Institut d'Economie et Econométrie, Université de Genève.
- Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
- Craig Depken, 2007. "Another look at anti-scalping laws: Theory and evidence," Public Choice, Springer, vol. 130(1), pages 55-77, January.
- Daniel, Rascher, 1999. "A Test of the Optimal Positive Production Network Externality in Major League Baseball," MPRA Paper 25832, University Library of Munich, Germany.
- Drayer, Joris & Shapiro, Stephen L., 2011. "An examination into the factors that influence consumers’ perceptions of value," Sport Management Review, Elsevier, vol. 14(4), pages 389-398.
- Daniel, Rascher & Chad, McEvoy & Mark, Nagel & Matt, Brown, 2007. "Variable Ticket Pricing in Major League Baseball," MPRA Paper 25803, University Library of Munich, Germany.
- Asparouhova, Elena & Bossaerts, Peter & Plott, Charles, 2003. "Excess demand and equilibration in multi-security financial markets: the empirical evidence," Journal of Financial Markets, Elsevier, vol. 6(1), pages 1-21, January.
- Phillip Leslie & Alan Sorensen, 2009. "The Welfare Effects of Ticket Resale," NBER Working Papers 15476, National Bureau of Economic Research, Inc.
- Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
- Peck, James, 1996. "Demand Uncertainty, Incomplete Markets, and the Optimality of Rationing," Journal of Economic Theory, Elsevier, vol. 70(2), pages 342-363, August.
- Pascal Courty, 2003. "Some Economics of Ticket Resale," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 85-97, Spring.
- Zane A. Spindler, 2003. "How “Parasites” Serve their Host: A Graphical Analysis of “Scalping”," Public Finance Review, , vol. 31(6), pages 694-699, November.
When requesting a correction, please mention this item's handle: RePEc:eee:spomar:v:15:y:2012:i:4:p:448-460. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.