L12 PSLs Luxury Seating - Price Discrimination Other...

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    Price Discrimination Other Stadium Revenue Personal Seat Licenses  Luxury Seating Corporate Revenue Sources
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    Definition   A firm charges different prices  for the same product based  on the consumer’s willingness  to pay Price Discrimination
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    Price Discrimination If: Teams can tell fans apart, somehow Resale can be prevented Enforcement is cheap enough
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    Price Discrimination Then: Charge different fans different prices for  the same game  (3 rd  degree) Charge the same fan a lower price for  successive games purchased all at  once  (2 nd  degree)
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    Price Discrimination Methods Different prices to different fans: Student discounts Senior discounts What about different prices for different stadium  locations?  Or different times during the  season? No-  The  quality  of the good has changed!  Not  selling the same product to different people.
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  Different prices  to the same buyer : Buy one, get one half price. Season ticket prices lower than summed  cost of individual attendance. “Family Plan” quantity discounts. Paying to reserve a particular seat.
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This note was uploaded on 04/17/2009 for the course KINS 4520 taught by Professor Maxcy during the Spring '09 term at University of Georgia Athens.

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L12 PSLs Luxury Seating - Price Discrimination Other...

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