Article

Illustrations of Price Discrimination in Baseball

Daniel A. Rascher and Andrew D. Schwarz

in The Oxford Handbook of Sports Economics

Published in print May 2012 | ISBN: 9780195387780
Published online September 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780195387780.013.0021

Series: Oxford Handbooks

 Illustrations of Price Discrimination in Baseball

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This article explores the ticket pricing behavior of the clubs to illustrate the theory of price discrimination. An example presented shows how useful it is to be flexible in recognizing that while a box seat to a game is not an identical product to an upper reserved seat at the same game, the two tickets sufficiently share the core product that the price discrimination framework is useful for analyzing pricing, even if the products are clearly not identical on every dimension of quality. It is stated that every single Major League Baseball 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 widespread, and more profitable, while at the same time providing more opportunities for more fans to find tickets at a price they are willing to pay.

Keywords: price discrimination; Major League Baseball; ticket pricing; box seat; pricing strategies

Article.  8672 words. 

Subjects: Economics ; Industry Studies ; Financial Institutions and Services

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