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Evidence of liquidity constraints found in theme park ticket auctions

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  • Richard Cebula
  • Richard McGrath

Abstract

Data from Internet auctions of unused tickets to Walt Disney World are used to establish the presence and financial impact of liquidity constraints for consumers, even when those consumers are confronted with a very short time horizon and a substantial potential monetary saving. Bidding for tickets is found to be consistent with the microeconomic consumer theory of risk and liquidity. The presence of liquidity premiums and premiums paid for variety in entertainment are separately established. Copyright Springer 2005

Suggested Citation

  • Richard Cebula & Richard McGrath, 2005. "Evidence of liquidity constraints found in theme park ticket auctions," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 29(1), pages 112-121, March.
    • Handle: RePEc:spr:jecfin:v:29:y:2005:i:1:p:112-121
    DOI: 10.1007/BF02761546
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    References listed on IDEAS

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