![Sample our Social Sciences journals, sign in here to start your FREE access for 14 days]({"type":"image" , "src" : "/sda/110822/TOC-Subject-Sample-2021-Social-Sciences.jpg"})
ABSTRACT
The present research seeks to examine the impact that price discrimination and price dispersion have on an organization’s revenue. Furthermore, we seek to understand whether facility type moderates the relationship between pricing behavior and revenue. Using a data set of Major League Baseball team ticket pricing behavior from 1990 through 2010, a two-staged least squares model is estimated. The findings indicate that both price discrimination and price dispersion does not impact a team’s total revenue. We find that new facilities do moderate this relationship between pricing behavior and revenues. We discuss the impact on the role that price behavior and venues have on revenue decisions for sport and leisure organizations.
Acknowledgements
To the knowledge of the authors, there is no university library that holds collections of the Red and Green Books. Daniel Rascher made the initial purchase of media guides, and Brad Humphreys made a second purchase of the media guides several years ago. We thank Dan and Brad for allowing us access to the media guides to develop this unique dataset. We would also like to thank Drs. Brad Humphreys, Neil Longely, and Andy Weinbach, along with participants at the 2013 Southern Economic Association Conference and the 2014 Western Economic Association International Conference for their comments regarding earlier versions of this manuscript.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
2 The actual standard deviation is the standard deviation of the winning percentage of the league’s teams in the observed season. The idealized standard deviation is 0.500 divided by the square root of games played in the season (Fort & Quirk, Citation1995).