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The Impact of Price Discrimination on Major League Baseball Team’s Revenue

Author

Listed:
  • Brian P Soebbing

    (Faculty of Physical Education and Recreation, University of Alberta)

  • Nicholas M Watanabe

    (Department of Health, Exercise Science, and Recreation Management, University of Mississippi)

  • Chad S Seifried

    (School of Kinesiology, Louisiana State University)

Abstract

The empirical evidence supporting the impact that second degree price discrimination has on a firm’s revenue has received little attention. The present research examines ticket data from Major League Baseball from 1990 through 2010. Estimating a two-staged least squares model, we find neither price discrimination variable has an impact on team revenues. However, we find that both of these price discrimination variables impact revenues when examining different facility types. We discuss the impact on the role that price behavior and venues have on price dispersion.

Suggested Citation

  • Brian P Soebbing & Nicholas M Watanabe & Chad S Seifried, 2016. "The Impact of Price Discrimination on Major League Baseball Team’s Revenue," Working Papers 1601, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:1601
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    File URL: http://web.holycross.edu/RePEc/spe/1601-Soebbing-Watanabe-Seifried.pdf
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    Citations

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    Cited by:

    1. Pascal Courty & Luke Davey, 2020. "The Impact of Variable Pricing, Dynamic Pricing, and Sponsored Secondary Markets in Major League Baseball," Journal of Sports Economics, , vol. 21(2), pages 115-138, February.

    More about this item

    Keywords

    Price Discrimination; Price Dispersion; Information; Revenue; Facilities; Tickets;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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