Inelastic sports pricing

  title={Inelastic sports pricing},
  author={Rodney Fort},
  journal={Managerial and Decision Economics},
  • R. Fort
  • Published 1 March 2004
  • Engineering
  • Managerial and Decision Economics
A recurrent finding in estimates of the gate demand for sports events is pricing in the inelastic portion of demand. With few exceptions, this finding has either been ignored or (rather poorly) explained away. In this paper, the recurrent outcome is detailed and the explanations given by past authors are discussed. Then, profit maximization theory is explored for its inelastic pricing implications. It ends up that the local TV revenue relationships between MLB teams satisfy the situation that… 

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