Dynamic Pricing

Determinants of Dynamic Pricing

Phenomenon, Aim, Scope

The central phenomenon of this study focuses on the determinants of closing prices for different ticket levels. The research was conducted on the four teams which uses the dynamic pricing during the Major league Baseball season in the year 2011. The paper focuses on identifying the closing dynamic prices the four teams. The key difference between the data used in this research and those used by EBAY is that the ticket prices compiled are directly offered by the team themselves, rather than by individual resellers. The other difference is that the prices selected in this research changed over time whereas the team's uses variable pricing set individual game prices at the start of the season and they do not fluctuate over time (Paul & Weinbach. 2013, p. 154).

The researchers of this article are Rodney J. Paul and Andrew P. Weinbach. Both of them are well known for their knowledge in Economics and Finance subjects. This research is a great contribution forms them which will not only help people in understanding the pricing techniques and trends but also show some results which can benefit teams in pricing their tickets. The main aim of the researchers was to find the gap related to the changes in pricing techniques. The independent variables which affect the pricing strategies are examined to conclude the results.

The research was conducted in the United States, within four cities. The pricing strategy was examined of Major League Baseball. The pricing strategies of four teams were examined here. Teams were namely; San Francisco Giants, St. Louis Cardinals, Chicago White Sox and Houston Astros. The strategy of the baseball teams were variable based before. Now they are shifting to the dynamic pricing strategies. The research was specific to the sports called baseball. But as the study was related to the pricing strategy, the results can be used by other sports team also for pricing their teams ticketing. The target population includes almost every age member. Because the audience comprises of all the age groups and genders. The results can be applied on many games because the audience is the key to consider here. The research considered the pricing trends of the tickets of a baseball game. Variable pricing techniques were used before, but later on, the pricing strategy that they applied was related to the dynamic pricing. So the change in pricing trend was examined here. Scope of the Literature Review, Theoretical Framework, Gap in Literature

Most of references from where the information was drawn were related to the economics and management study. The Journal of Sports Economics was used in which the explanation of the game to game ticket sales of Major League Baseball was stated. There were also some references related to the dynamic pricing strategy. The dynamic pricing strategy is basically used by the airline business and the hotel managements, in order to maximize profits. Few economic letters related to the dynamic pricing were also ...