Quote:
Originally Posted by EldrickOnIce
From an economic standpoint, tickets are perfectly priced. If the building is always full you aren't charging enough.
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I think you could make an argument against that.
Scarcity and perceived scarcity are important factors at work too.
If your average ticket price is $70 for example, and at that price season tickets are sold out, you have a strong waiting list, and secondary ticket prices are probably going to be a little higher than season ticket prices. People will want to hold on to their tickets for their perceived value and scarcity.
If you price your tickets at the absolute highest threshold the public is willing to spend to maximize revenue for that season, then you start to have people cancelling their season tickets, which leads to more single game tickets available, which leads to lower secondary values, which leads to less perceived value for season ticket holders, which leads to more season ticket holders giving up tickets, and so on.
When you get to the point when secondary tickets are going for half of what the team is selling season tickets for, you've messed up the whole economic equation and will eventually hurt your bottom line.