1. Why are sports teams considering switching to a variable-pricing strategy for tickets?
2. Use the table below to predict what would happen if airlines and baseball stadiums priced all seats the same instead of using variable pricing. What would happen to the number of tickets sold? What would happen to the total revenue from ticket sales? Assume stadiums are using variable pricing and aren't completely sold out or completely empty. What would change if
seats were sold at the lowest prices? Highest prices? Variable prices?
3. Drawing Conclusions Stephen Duford says he skipped the game with rival Toronto because of the price increases. "I do not agree that I have to pay extra to see certain teams," he says. "I don't pay less for teams that usually don't draw." What do you know about Mr. Duford's demand (willingness and ability to purchase) for tickets to see the Senators play Toronto?