Indices for Dynamic Pricing in the Event Ticketing Industry
12 Pages Posted: 26 Mar 2018
Date Written: March 26, 2018
As dynamic pricing becomes more common for event tickets including NFL, MLB, NBA and NCAA games, the ability to effectively measure and track prices changes for an event over time becomes critical. Standard price measures that are currently used for price measurement are ill suited to capture the complexities of an event ticket. This article outlines new industry-specific measures for event tickets that enable lifecycle trend analysis for ticket prices and effective price tracking over time, adjusting for ticket quality and varying inventory. The measures introduced are designed to be invariant under large ticket sales, volume changes, and differences in seat values. Additionally, we also briefly discuss the impact of brokers on secondary market pricing to add to literature dynamics that remain presently unexplored.
Keywords: dynamic pricing, sports economics, event ticketing, sports analytics, ticket pricing
JEL Classification: Z29, Z23, Z20, L83, L11, D49
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