Wednesday, November 2, 2016
Brian P Soebbing (Faculty of Physical Education and Recreation, University of Alberta); Nicholas M Watanabe (Department of Health, Exercise Science, and Recreation Management, University of Mississippi) and Chad S Seifried (School of Kinesiology, Louisiana State University) examine The Impact of Price Discrimination on Major League Baseball Team’s Revenue.
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.