First, read Chapter 7: Setting Prices for Sports & Entertainment.
Then, read the article, "A year after LeBron, you could get tickets to a Cleveland Cavaliers game for $2"
- What are the 3 different variables that affect dynamic pricing models?
- Which of these variables are affecting the pricing of the game in the screenshot below?
- Despite Lebron's departure from the Cavaliers to the Lakers, the Cavaliers recorded a higher average attendance than the Lakers. One article concludes that this is due to the Cavs' low ticket prices. But based on what you know of ticket pricing from Chapters 6-7, what are some of the likely factors contributing to the Cavs' higher attendance? Which of the E's and F's do you think compel Cavs fans to go to games despite team performance?
- What happens to perceived ticket value when teams frequently discount their tickets?
- How can you effectively offer a discount on tickets without diminishing perceived ticket value?