Abstract

We examine the academic literature to determine main predictors of ticket pricing for NBA franchises over the course of a single season. Our paper follows two main sections: demand factors affecting ticket prices of NBA franchises and supply factors affecting ticket prices of NBA franchises. Related to these sections, we also map strategies NBA teams can use to extract surplus, including dynamic pricing (ie., price discrimination) and monopoly profits. It is important to consider team specific differences (the variability that exists between teams) as well as consider factors of pricing that affect all teams the same but may change over time (e.g., the state of the economy in the country). Although we shed light on these issues, our paper cannot possibly account for all factors.

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