Evidence of liquidity constraints found in theme park ticket auctions

Data from Internet auctions of unused tickets to Walt Disney World are used to establish the presence and financial impact of liquidity constraints for consumers, even when those consumers are confronted with a very short time horizon and a substantial potential monetary saving. Bidding for tickets is found to be consistent with the microeconomic consumer theory of risk and liquidity. The presence of liquidity premiums and premiums paid for variety in entertainment are separately established. The authors wish to thank an anonymous referee for very helpful comments and would like to acknowledge Michael Toma, Andy Weinbach, and conference participants of the Academy of Economics and Finance.