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Major League Baseball: Dynamic Ticket Pricing and Measurement Costs

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Listed:
  • Tim Dittmer
  • Bob Carbaugh

Abstract

This paper discusses dynamic ticket pricing by Major League Baseball and how it applies to the measurement or transaction explanation of pricing. Key reductions in the cost of measuring margins that vary in value, such as the win/loss record of the opposing team, are identified, and these reductions in measurement cost help explain the switch from static to variable to dynamic pricing of tickets. Instructors of intermediate microeconomics and managerial economics that wish to discuss dynamic pricing may find this example interesting to sports oriented students.

Suggested Citation

  • Tim Dittmer & Bob Carbaugh, 2014. "Major League Baseball: Dynamic Ticket Pricing and Measurement Costs," Journal for Economic Educators, Middle Tennessee State University, Business and Economic Research Center, vol. 14(1), pages 44-57, Fall.
    • Handle: RePEc:mts:jrnlee:v:14:y:2014:i:1:p:44-57
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    File URL: http://capone.mtsu.edu/jee/2014/P44toP57-Ms613.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    major league baseball; dynamic ticket pricing; measurement costs;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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