How can a sports team win off the field with variable ticket pricing strategies? A new study in the journal. management sciences sheds light on the adoption of variable price increases in primary market ticket sales by looking at the National Football League (NFL) ticket markets.
The study, “Scoring a Touchdown with Variable Prices: Evidence from a Quasi-Experiment in NFL Ticket Markets,” analyzes primary and resale ticket market data for each 2012 NFL regular season game. to 2015. The authors find that the adoption of variable pricing increases ticket sales in the primary market by 1.59% per game.
“We explored the reasoning behind this positive impact and found that customers accept lower prices for less popular games and higher prices for more compelling games,” says Hayri Alper Arslan of the University of Texas at San Antonio.
Arslan, along with Necati Tereyagoglu of the University of South Carolina and Ovunc Yilmaz of the University of Colorado Boulder, say this work provides evidence of the increase in option value created by the resale market and explains the positive response to prices. higher for more engaging games.
“Through our new data set, this study sheds light on the interplay between mainstream and resale ticket market dynamics and provides important insights for sports teams who are interested in driving ticket sales and revenue. “Tereyagoglu says.
The study concludes by pointing out the situations in which variable pricing is most effective. “For example, we find that variable pricing is more successful in the home cities of teams with lower income levels and greater income diversity, and creating more levels of play at variable pricing leads to higher sales,” he adds. Yilmaz.
The researchers are clear that while variable pricing allows sports teams to respond to changing demand in games, reports point to somewhat limited implementation.
Hayri A. Arslan et al, Scoring a Touchdown with Varying Prices: Evidence from a Quasi-Experiment in NFL Ticket Markets, management sciences (2022). DOI: 10.1287/mnsc.2022.4588
Provided by the Institute for Operations Research and Management Sciences
Citation: New Research Finds Variable Prices for NFL Games Increase Ticket Sales (January 24, 2023) Accessed January 24, 2023 at https://phys.org/news/2023-01-variable -pricing-nfl-games-ticket.html
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