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

Brian Soebbing, Nicholas Watanabe () and Chad Seifried ()
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Nicholas Watanabe: Department of Health, Exercise Science, and Recreation Management, University of Mississippi
Chad Seifried: School of Kinesiology, Louisiana State University

No 1601, Working Papers from International Association of Sports Economists, North American Association of Sports Economists

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.

Keywords: Price Discrimination; Price Dispersion; Information; Revenue; Facilities; Tickets (search for similar items in EconPapers)
JEL-codes: D42 L12 L83 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016-08
New Economics Papers: this item is included in nep-bec, nep-com, nep-cul, nep-mkt and nep-spo
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