The impact of price discrimination, price dispersion, and facilities on organizational revenue: lessons from Major League Baseball. Issue 6 (2nd November 2017)

• Record Type: Journal Article
• Authors: Soebbing, Brian P.; Watanabe, Nicholas M.; Seifried, Chad S.
• Is Part Of: Managing sport and leisure. Volume 22:Issue 6(2017)
• Page Start: 442
• Page End: 457
• Publication Date: 2017-11-02
• Subjects: Price discrimination -- price dispersion -- information -- revenue -- facilities -- tickets; D42 -- L12 -- L83; Leisure -- Management -- Periodicals; Leisure -- Management; Periodicals; 796.069
• DOI: 10.1080/23750472.2018.1515031
• Languages: English
• ISSNs: 2375-0472

Abstract

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.