Optimal ticket pricing in professional sports: a social identity approach

Matthias Peiss () and Roland Kirstein
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Matthias Peiss: Otto-von-Guericke University Magdeburg

Economics Bulletin, 2014, vol. 34, issue 4, 2138-2150

Abstract: A frequently observed phenomenon in professional sports is apparent underpricing of tickets. The concept of social identity may explain this pricing behavior without giving up the assumption of profit-maximizing behavior. Repeated match attendance increases spectators' identification with the team and their willingness to pay for attendance. In this paper, we set up a model to analyze a profit-maximizing team's optimal pricing decision including such spectator identification. Conditions are derived under which incentives to underprice arise.

Keywords: underpricing; spectator sports; ticket sales; social identity (search for similar items in EconPapers)
JEL-codes: D0 D4 (search for similar items in EconPapers)
Date: 2014-10-24
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Citations: View citations in EconPapers (1)

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