Impact Of Price Discrimination Research Articles

The impact of price discrimination, price dispersion, and facilities on organizational revenue: lessons from Major League Baseball

ABSTRACTThe 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.

Teaching Third-Degree Price Discrimination by a Monopolist with Linear Demands

This paper uses both a geometrical and mathematical analysis to explain monopolistic third-degree price discrimination, and it also shows how price discrimination affects society. A frequent policy question in the price discrimination literature is whether to allow third-degree price discrimination or to enforce uniform pricing. A key feature to understanding this issue in the context of imperfectly competitive markets is the impact of price discrimination on output. The article shows that a monopoly facing downward sloping linear demands, and constant marginal costs, will obtain higher profits under price discrimination than under a single-price strategy, but price discrimination lowers welfare if total output does not change. When price discrimination causes total output to increase, then this practice will have a beneficial effect on overall welfare.

The impact of price discrimination on consumer surplus at popular music concerts

We estimate consumer surplus gains and losses from concert ticket price discrimination. Fans purchasing low-priced tickets enjoy a surplus gain of about $9.26 per ticket while high-priced ticket buyers suffer a loss of about $17.63 per ticket.

The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry

Abstract Concert tickets can be sold at the same price or at different prices that reflect different seating categories. Price discrimination generates about 5% greater revenues than single-price ticketing. The return to price discrimination is higher in markets with greater demand heterogeneity, as predicted by price discrimination theory. The return to an increase from three to four concert seat categories is roughly half that of an increase from one to two.