Using Prediction Market Prices to Differentiate Factors that Influence the Highest and Lowest Priced Tickets in Dynamic Pricing for Major League Baseball

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Published: Oct 13, 2015
DOI: https://doi.org/10.5750/jpm.v9i2.1081
Keywords:
uncertainty of outcome prediction markets dynamic pricing

Main Article Content

Rodney Paul
Syracuse University
Andrew Weinbach
Coastal Carolina University

Abstract

The use of prediction markets is extended to explain differences in preferences of fans that purchase different price levels of tickets under dynamic pricing for Major League Baseball.  Using data from eleven teams, this research investigates similarities and differences in variables that affect ticket prices for the highest-priced and lowest-priced tickets.  Key contrasts between the groups are found to stem from distinct preferences for uncertainty of outcome, measured by betting market odds, and team quality.  It is also shown that differences between the groups are attributable to sensitivity to factors such as key opponents, weekend games, opening day, and temperature.

Article Details

Issue
Vol. 9 No. 2 (2015)
Section
Articles
Author Biography

Rodney Paul, Syracuse University

Professor - Department of Sport Management - Syracuse UniversityPhD - Applied Economics - Clemson University 2000

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