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Illustrations of Price Discrimination in Baseball

Author

Listed:
  • Daniel, Rascher
  • Andrew, Schwarz

Abstract

Price discrimination of this nature, focused on differing degrees of quality, bundled goods, volume discounts, and other forms of second-degree price discrimination, is commonplace in MLB. Indeed, it is safe to say that every single MLB ticket is sold under some form of price discrimination. As teams grow increasingly sophisticated in their pricing strategies, price discrimination is becoming more precise, more wide-spread, and more profitable, while at the same time providing for more opportunities for more fans to find tickets at a price they are willing to pay. Unlike a baseball game, where one team must lose and one must win, price discrimination allows for win-win economic outcomes for teams and fans alike.

Suggested Citation

  • Daniel, Rascher & Andrew, Schwarz, 2010. "Illustrations of Price Discrimination in Baseball," MPRA Paper 25807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25807
    as

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    File URL: https://mpra.ub.uni-muenchen.de/25807/1/MPRA_paper_25807.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    price discrimination; bundling; variable pricing; dynamic pricing; secondary ticketing; two-part tariff; loaded ticket;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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