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Unit 1 Micro: Prices in Action - Ticket Pricing at Derby County

Monday, September 17, 2012
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A warm hat tip to Ed Marsh, Head of Economics at Glyn School for spotting this superb example of a sports club using dynamic pricing technology to determine the prices of tickets for their home games. 

The BBC news site reports  that Derby County are introducing "demand-based" ticketing for the coming season with prices fluctuating according to the opposition, the team's form, kick-off times and even the weather. The system is known as Sports and Entertainment Analytical Ticketing System (SEATS) 

Buy in advance and fans will get cheaper prices - but what if a sizeable group decides to start a game of chicken with the club and hold back from buying? As match day gets closer, ticket prices should move higher, but if demand for a game is well below the stadium's capacity will prices drop back?

Hardened cynics might also point out that the Derby County ground has a fundamental design flaw .... the seats face the pitch!



 

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