An examination of underlying consumer demand and sport pricing using secondary market data

Joris Drayer, Daniel A. Rascher, Chad D. McEvoy

Research output: Contribution to journalArticle

17 Scopus citations

Abstract

The growth of the secondary ticket market has given sport managers a new way to understand consumer demand for tickets. In the secondary market, transaction prices and the number of transactions are highly variable and respond directly to consumer preferences, making it ripe for exploration. Using secondary market data for the NFL provided by a secondary market firm, the purpose of the current study is to understand a variety of traditional sport economics issues such as demand, consumer surplus, and pricing (in)efficiency. Results show that secondary market prices, instead of number of transactions, respond to the factors commonly associated with consumer demand. Further, the data indicate that teams may be able to sell 20,000 additional seats for each game. However, given that teams cannot easily add this number of seats (and may not want to given the NFL's blackout rule), there is approximately $260,000 in consumer surplus per game that is captured by resellers.

Original languageEnglish (US)
Pages (from-to)448-460
Number of pages13
JournalSport Management Review
Volume15
Issue number4
DOIs
StatePublished - Nov 1 2012

Keywords

  • Consumer demand
  • Consumer surplus
  • Price inefficiency
  • Secondary market
  • Sport pricing
  • Tickets

ASJC Scopus subject areas

  • Business and International Management
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management Science and Operations Research
  • Marketing

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