This preview shows pages 1–3. Sign up to view the full content.
Homework 4
Bundling
1.
You are the owner of a basketball franchise, and are in charge of determining the ticket
prices. You hire an econ major from UTA to find out how much people are willing to
spend on tickets to a basketball game. This is what the econ major tells you:
There are 41 home games. People’s willingness to pay to go to a back is represented by the
following graph:
a.
What price would you set for a single game day ticket?
$50
b.
What price would you set for a 5 game package?
$225 or $45 per game
c.
What price would you set for a 15 game package?
$625 or $41.67 per game
d.
What price would you set for a 30 game package?
$1075 or $35.83 per game
e.
What price would you set for season tickets?
$1295 or $31.59 per game
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentPrice Discrimination
1.
You are the owner of a baseball franchise, and are in charge of determining the ticket
prices to attend the last game of the year. You hire an econ major from UTA to find out
the demand to basketball games. This is what the econ major tells you:
This is the end of the preview. Sign up
to
access the rest of the document.
 Spring '08
 Staff

Click to edit the document details