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Club Objectives and Ticket Pricing in Professional Team Sports

Stefan Kesenne and Wilfried Pauwels
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Wilfried Pauwels: University of Antwerp

Eastern Economic Journal, 2006, vol. 32, issue 3, 549-560

Abstract: In this paper we analyze and compare the behavior of sports clubs in a profit and a win maximization league if the decisions on the optimal ticket price and the talent demand have to be made simultaneously. From this 2-decision-variable model, a few interesting conclusions, regarding the impact of the player salary level or a stadium capacity constraint on the ticket price, can be drawn. Also, some important policy implications are considered such as imposing maximum ticket prices, imposing salary caps and granting a government subsidy.

Date: 2006
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Working Paper: Club objectives and ticket pricing in professional team sports (2002) Downloads
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Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

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