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The Pricing of a Round of Golf

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  • James G. Mulligan

    (University of Delaware)

Abstract

This article argues that the use of membership fees at shared facilities, such as private golf courses, is not per se evidence of inefficient pricing as implied by the club theory literature on variable usage. The author reconciles the inconsistency between the predictions of existing models and empirical evidence by accounting for members’ opportunity cost of time and the effect of congestion on members’ utility. In particular, this research shows that the simplified nature of congestion assumed in the literature ignores the positive externalities that members receive from a members-only club.

Suggested Citation

  • James G. Mulligan, 2001. "The Pricing of a Round of Golf," Journal of Sports Economics, , vol. 2(4), pages 328-340, November.
  • Handle: RePEc:sae:jospec:v:2:y:2001:i:4:p:328-340
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    References listed on IDEAS

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    13. Zuber, Richard A & Gandar, John M & Bowers, Benny D, 1985. "Beating the Spread: Testing the Efficiency of the Gambling Market for National Football League Games," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 800-806, August.
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    Cited by:

    1. Frank Limehouse & Michael Maloney & Kurt Rotthoff, 2012. "Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(3), pages 151-165, May.
    2. Johan Lundberg & Sofia Lundberg, 2004. "Join the Club - On the Attractiveness of Golf Club Membership," ERSA conference papers ersa04p242, European Regional Science Association.

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