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

Document Type

Article

Publication Date

11-2-2017

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.

Publication Source (Journal or Book title)

Managing Sport and Leisure

First Page

442

Last Page

457

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