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The home field advantage: Implications for the pricing of tickets to professional team sporting events

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  • David Boyd
  • Laura Boyd

Abstract

Existing empirical estimates of the elasticity of demand for tickets to professional team sporting events are consistently inelastic, throwing into question the assumption of profit-maximizing behavior on the part of team management. We provide a new theory of team sport ticket pricing, based on the home field advantage, which implies that the elasticity of demand relevant for profit maximization is more elastic than the traditional ceteris paribus elasticity measure. Thus, the inelastic traditional point estimates are not necessarily inconsistent with team profit maximization. Copyright Springer 1998

Suggested Citation

  • David Boyd & Laura Boyd, 1998. "The home field advantage: Implications for the pricing of tickets to professional team sporting events," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 22(2), pages 169-179, June.
    • Handle: RePEc:spr:jecfin:v:22:y:1998:i:2:p:169-179
    DOI: 10.1007/BF02771486
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    References listed on IDEAS

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    1. Ferguson, D G, , et al, 1991. "The Pricing of Sports Events: Do Teams Maximize Profit?," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 297-310, March.
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    Cited by:

    1. Daniel A. Rascher & John Paul G. Solmes, 2007. "Do Fans Want Close Contests? A Test of the Uncertainty of Outcome Hypothesis in the National Basketball Association," International Journal of Sport Finance, Fitness Information Technology, vol. 2(3), pages 130-141, August.
    2. Drayer, Joris & Rascher, Daniel A. & McEvoy, Chad D., 2012. "An examination of underlying consumer demand and sport pricing using secondary market data," Sport Management Review, Elsevier, vol. 15(4), pages 448-460.
    3. Regina Madalozzo & Rodrigo Berber Villar, 2009. "Brazilian Football," Journal of Sports Economics, , vol. 10(6), pages 639-650, December.
    4. Feddersen, Arne & Humphreys, Brad & Soebbing, Brian, 2012. "Cost Incentives in European Football," Working Papers 2012-13, University of Alberta, Department of Economics.
    5. Jaume García & Plácido Rodríguez, 2002. "The Determinants of Football Match Attendance Revisited," Journal of Sports Economics, , vol. 3(1), pages 18-38, February.
    6. Todd D. Kendall, 2003. "Spillovers, Complementarities, and Sorting in Labor Markets with an Application to Professional Sports," Southern Economic Journal, John Wiley & Sons, vol. 70(2), pages 389-402, October.
    7. José Correia Guedes & Fernando S. Machado, 2002. "Changing rewards in contests: Has the three-point rule brought more offense to soccer?," Empirical Economics, Springer, vol. 27(4), pages 607-630.
    8. Matthew J. Drake & Serhan Duran & Paul M. Griffin & Julie L. Swann, 2008. "Optimal timing of switches between product sales for sports and entertainment tickets," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(1), pages 59-75, February.
    9. Vlad I. ROȘCA, 2020. "The Effect of Match Attendance on Team Performance in Basketball," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 21(1), pages 71-84, March.
    10. Christopher Huth & Markus Kurscheidt, 2022. "Season Ticketing as a Risk Management Tool in Professional Team Sports: A Pricing Analysis of German Soccer and Basketball," JRFM, MDPI, vol. 15(9), pages 1-18, September.
    11. Mehmet Şahin, 2019. "Optimization of dynamic ticket pricing parameters," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 306-316, August.
    12. Daniel, Rascher & Chad, McEvoy & Mark, Nagel & Matt, Brown, 2007. "Variable Ticket Pricing in Major League Baseball," MPRA Paper 25803, University Library of Munich, Germany.
    13. 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.
    14. Pelnar, Gregory, 2009. "Competition and Cooperation between Professional Sports Franchises: The Impact on Ticket Prices," MPRA Paper 17787, University Library of Munich, Germany.
    15. Jaume García & Plácido Rodríguez, 2013. "The determinants of football match attendance in Spanish football: an empirical analysis," Chapters, in: Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), The Econometrics of Sport, chapter 9, pages 154-166, Edward Elgar Publishing.
    16. Néstor Garza, Iván Yunis, 2012. "Desempeno de los equipos en el fútbol profesional colombiano: un análisis in game," Revista de Economía del Caribe 10254, Universidad del Norte.

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