Friday, November 19, 2010

Others Follow the Giants Lead with Dynamic Pricing

Brooklyn National League Grounds (LOC)
An empty stadium in the dark days before dynamic pricing
The Giants were the first to test the waters of Dynamic Pricing in 2009 with a couple of hard to sell sections and then expanded the program to every seat in the house for the following season and it was declared a success with an increase in tickets sold and revenue.

Well it is beginning to look like the start of a trend. The Astro's followed suit last season and the Cardinals plan to implement the floating prices this coming season.

Dynamic Pricing allows ticket prices to change - either up or down, depending on a number of factors ranging from the opponent, pitching match-up, weather, other entertainment options in town and promotions. The idea is that it will better allocate the scarce seats with the demand for them.

Under standard pricing if a game is more attractive many people who would like to go miss out and the team misses out on higher potential ticket prices, if a game is less desirable the stadium will not fill up as fans find the tickets too expensive. Dynamic pricing looks to bring things in line so more tickets are sold to each game.

I have heard some fan grumbling about this especially when the Red Sox were in town, but for the most part this has been well excepted. The baseline ticket prices have fallen so if you buy early you can save money and if you really want to go to a game with this there is often seats available and for less then what a scalper would charge you.

As an economist I am a fan and wish that more things came priced in this way. Welcome to the future Cardinals fans.

If your on Twitter you should definitely follow the The Crazy Crabbers. If you're not you should really consider joining, lots of good stuff going on there.

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