Optimal ticket pricing for performance goods

When purchasing a ticket to a performance good, such as a movie or sporting event, the consumer does not actually buy the product, but simply access to viewing the product. Although the performance is the primary impetus for the ticket purchase, many performance goods offer complementary products such as concessions to their patrons. This paper suggests that when the price setter receives a share of revenues from concessions, overall profits will be maximized when tickets are priced in the inelastic section of demand. The model can be used to explain inelastic point estimates for ticket pricing found in other performance good studies. © 1997 John Wiley & Sons, Ltd.     

The home field advantage: Implications for the pricing of tickets to professional team sporting events

Existing empirical estimates of the elasticity of demand for tickets to professional team sporting events are consistently inelastic, throwing into question the assumption of profit-maximizing behavior on the part of team management. We provide a new theory of team sport ticket pricing, based on the home field advantage, which implies that the elasticity of demand relevant for profit maximization is more elastic than the traditional ceteris paribus elasticity measure. Thus, the inelastic traditional point estimates are not necessarily inconsistent with team profit maximization.     

The Revenue Gains from Multi‐Tier Ticket Pricing: Evidence from Pop Music Concerts

We provide empirical estimates of the revenue benefits of multi‐tier pricing at a major US pop music venue. Our unique sample includes data on the number of tickets sold at every price. Mean revenue gain from multi‐tier pricing is estimated to be about $20,000 per show, a 4.2% increase over uniform pricing, although the gains were as high as 21.2% for one performer. We also provide evidence that customer segmentation by income is a likely motive of multi‐tier pricing and, for the first time, that the standard assumption of zero marginal cost of additional venue attendees is valid. Copyright © 2012 John Wiley & Sons, Ltd.     

Financing Capacity in the Bottleneck Model

It is well known that, for a congestible facility with constant long-run average cost, the revenue from the unconstrained optimal congestion charge (set so that each individual faces the marginal (social) cost of a use) exactly covers the cost of optimal capacity. In the context of Vickrey′s bottleneck model of morning rush-hour auto congestion, this paper investigates under what circumstances the first-best pricing and investment rules apply when both the time variation of the congestion charge is constrained and users differ in unobservable characteristics so that the same congestion charge must be applied to heterogeneous users.     

On revenue recycling and the welfare effects of second-best congestion pricing in a monocentric city

This paper examines congestion taxes in a monocentric city with pre-existing labor taxation. When road toll revenue is used to finance labor tax cuts, 35% of the optimal road tax in our numerical model does not reflect marginal external congestion costs, but rather functions as a Ramsey–Mirrlees tax, i.e. an efficiency enhancing mechanism allowing for an indirect spatial differentiation of the labor tax. This adds a quite different motivation to road pricing, since welfare gains can be produced even in absence of congestion. We find that the optimal road tax is non-monotonic across space, reflecting the different impacts of labor supply elasticity and marginal utility of income, which both vary over space. The relative efficiencies of some archetype second-best pricing schemes (cordon toll, flat kilometer tax) are high (84% and 70% respectively). When road toll revenue is recycled lump-sum, the optimal toll lies below its Pigouvian level. Extensions in a bimodal framework show that the optimality of using road toll revenue to subsidize public transport depends on the initial inefficiency in public transport pricing.     

租车行业收益管理研究现状及前景展望

本文基于租车行业收益管理的特点,从需求预测、超订、存量控制和价格策略四个方面对租车收益管理的研究现状进行分析,展望了收益管理在租车行业的研究前景.     

A Time Series Analysis of U.K. Lottery Sales: Long and Short Run Price Elasticities

This paper estimates the long- and short-run elasticities for Lotto. It is particularly concerned with the dynamic response to price variations since, for some goods, this has sometimes been used to infer the presence of addiction. The price elasticity is identified through variation in the expected value of a Lotto ticket induced by rollovers whose high frequency results in surprisingly high variation in the expected value of holding a ticket. Unit root tests are applied to the series in order to identify their time series properties and to avoid a spurious regression problem. The series are found to be stationary. We apply instrumental variables to account for the endogeneity which arises due to correlation between the expected value and the dependent sales variable. The estimated long-run elasticity exceeds the short-run elasticity and this supports the hypothesis that there is an element of addictive behaviour in sales. The Lottery is regulated and the regulator's objective is to maximize sales. Our estimated long-run price elasticity of demand is inconsistent with revenue maximization and we find that greater revenue for the 'good causes' could be raised from the game if a smaller proportion of sales revenue were allocated to them.     

A note on two‐part pricing under uncertainty

In his classic article, Walter Oi (Oi, Q. J. Econ. 2005; 85 : 77–96) analyzed the optimal structure of a two‐part tariff. He showed that identical consumer demands result in user fees equal to marginal cost and a lump‐sum entry fee equal to the consumer surplus that marginal cost pricing generates. This result appears in managerial economics texts (Managerial Economics (6th edn). W. W. Norton: New York; 472–475; Managerial Economics and Business Strategy (5th edn). McGraw Hill/Irwin: New York; 410–412) and intermediate microeconomics texts (Intermediate Microeconomics (6th edn). W. W. Norton: New York; 451–453). In this note, we extend Oi's analysis to the case of uncertainty. We show that attitudes toward risk influence the optimal two‐part tariff. The results from our model describe the two‐part tariff that emerges from expected utility maximization. Copyright © 2010 John Wiley & Sons, Ltd.     

国内景区门票涨价研究进展与述评

景区门票是一种准入制度,而门票价格是景区准入的"门槛高度"。本文以国内旅游景区门票价格上涨历程为轴线,对旅游景区门票涨价原因、涨价影响与定价方法等三个方面进行述评。根据研究现状,笔者提出了相应的研究思路。     

Ramsey Pricing: A Method for Setting Fees in Social Service Organizations

Abstract . In non-profit social services, there is a tendency to avoid setting prices because of the distributional concerns and incompetence on the part of some consumers. Arguments for prices and cash transfers versus in-kind subsidies are reviewed. The appropriateness is examined of “Ramsey pricing” in achieving efficient resource allocation in a zero-profit firm when marginal cost pricing would lead to a profit. A survey of social service agencies in Ontario, Canada, found none was using the principles of “Ramsey pricing” and most were using no fees or prices at all. Some agencies had set prices but then waived them while others set fees equivalent to services provided by nonsocial service agencies. Most view fees as supplemental additions to the budget and consequently do not consider resource allocation. “Ramsey pricing,” it is believed, could be beneficially tried by social service agencies.     

The issuer effect on default risk insured municipal bond yields

In this study, an interesting aspect of the secondary market's pricing of the riskiness of insured municipal bonds is examined. Do secondary market investors still consider the underlying intrinsic credit quality of the issuer in pricing insured bonds? Is the pricing of this “issuer effect” treated equally for both revenue and general obligation bonds? We find that, while the market does not differentiate between equally insured revenue and general obligation bonds, the intrinsic credit quality of the issuer is reflected in the bond issue's quality spread. The results suggest that investors are concerned with the default risk protection of insured municipal bonds regardless of whether they are revenue or general obligation bonds. The market does not perceive insurers to be perfect substitutes for issuers in a risk transfer. Further, the results suggest there is justification for obtaining an agency rating according to issuer credit quality even for insured bonds.     

Valuation of ticket prices for first-division football matches in the Spanish league

This paper measures the optimal prices of football tickets and investigates the pricing strategy of the first-division teams in the Spanish league during the 2018/2019 season. The paper develops a dual hybrid model of supply and demand based on a hedonic price approach. Fans have multiple motivations to attend the stadium, such as the quality of the opposing teams, the pre-match qualifying position, the schedule, the day of the match, the stadium facilities, and the atmosphere. Their final decision will be conditioned by the price set by the clubs. The data show a difference of almost 300% in ticket prices among clubs. The estimation results from a hedonic price equation reveal that an optimal pricing strategy is followed by only five out of 20 clubs in the league. We also quantify the percentage of overvaluation or undervaluation of ticket prices.     

双边平台型信息产品企业版本划分策略研究

新兴的信息产品市场大多是双边市场,其中企业进行竞争时如何利用信息产品特性和市场双边特性,对产品质量和双边定价进行决策,运用纵向差异化策略达到最优收益,是双边平台型信息产品企业面对的重要问题。结合双边市场理论与版本划分理论,建立博弈模型,分析双边信息产品市场内平台型企业竞争的最优双边定价和产品版本划分的具体质量。结果显示:企业产品定价受产品组合质量差异的影响,对卖家定价由市场情况决定;企业提高付费产品质量可以提高收益,此时免费产品质量应根据市场双边特性强度进行调整;市场双边特性显著时企业免费产品质量应降低以提高收益,反之亦然;企业产品质量决策保证了双边规模和上游收益,下游收益则受市场双边特性强弱影响,市场双边特性显著时,平台付费产品价格和付费消费者规模提高,下游收益和总收益提高。     

A revenue management approach to demand management and order booking in assemble-to-order manufacturing

Revenue management is an order acceptance and refusal process that employs differential pricing strategies and stop sales tactics to reallocate capacity, enhance delivery reliability and speed, and realize revenue from change order responsiveness in order to maximize the revenue from pre-existing capacity. While previously considered primarily as a tool of service operations, revenue management has considerable potential for assemble to order (ATO) manufacturing environments. Increasing demand for customer responsiveness has created service-oriented manufacturing environments suitable for the application of revenue management methods. This paper applies revenue management concepts and techniques to ATO manufacturing environments and presents models for optimal pricing and capacity decisions.     

Reverse Pricing and Revenue Sharing in a Vertical Market

Advancing in information technology has empowered firms with unprecedented flexibility when interacting with each other. We compare welfare results in a vertical market (e.g., manufacturers and retailers) for several types of pricing strategies depending upon the following: (1) which side (retailers or manufacturers) chooses retail prices; and (2) whether there is revenue sharing or linear pricing between the two sides. Our results are as follows. Under revenue sharing, retail prices (and thus industry profits) are higher if and only if they are chosen by the side featuring less competition. Under linear pricing, however, retail prices are higher if they are chosen by the side featuring more competition (for linear demand functions). Relative to linear pricing, revenue sharing always leads to lower retail prices, higher consumer surplus and social surplus. However, the comparison on industry profits depends on the demand elasticity ratios. Revenue sharing raises industry profits when the elasticity ratios are small, but the results are reversed when the elasticity ratios are large. Copyright © 2014 John Wiley & Sons, Ltd.     

Are baseball players paid their marginal products?

Previous researchers found that baseball players under the reserve clause had been paid considerably less than their contributions to club revenues. We ask, has the new contractual system of free agency and final-offer arbitration brought baseball salaries into line with marginal revenue products? Using public data for the 1986 and 1987 seasons, our basic answer is yes, major league salaries generally coincide with estimated marginal revenue products, though significant deviations exist. Experienced players are paid in accord with their productivity; young players, however, are paid less than their marginal revenue product, on average. This result is closely related to the market structure within baseball.     

会员制两部定价法在酒店行业中的应用

针对目前酒店业常用定价方法的弊端，采用会员制两部定价法的原理，对会费和会员价进行了研究分析，得出了最优会费以及最优会员价的制定。分析发现，将会员制的管理与两部定价法结合起来，能够将统一定价下的消费者剩余转化为生产者剩余，增加酒店收益，提升酒店竞争力。     

US professional football: The demand for game-day attendance in 1991

This paper examines the factors which affect game-day attendance at National Football League games during the 1991 season. Using a Tobit analysis, the model includes economic as well as quality of game variables as explanatory variables. This analysis reveals that: higher ticket prices reduce attendance with the demand appearing to be inelastic; and a winning home team spurs game-day attendance.     

Returnee Talent and Corporate Investment: Evidence from China

We manually collected a dataset comprising the overseas experiences of management teams of listed Chinese firms and investigated the effects of returnee talent on firm investment efficiency (InvEff). The results show that (1) returnees improve InvEff significantly, especially for firms that experience overinvestment; (2) the central-government-controlled state-owned enterprises benefit the most from overseas returnees; and (3) foreign experience in countries with effective governance and low corruption levels have significantly marginal effects on the improvement in InvEff. This study highlights a new channel of international knowledge spillover and practically guides the introduction of talent policy in emerging markets.