Setting Prices for Tickets and Concessions
the fantasy football teams play one another in head-to-head
competition with one team hosting the "game" in their
stadium. EconFantasy.com allows the home team to set prices
for the event in their stadiums. In the simulation pricing decision
can be changed from game to game so that the students experience
the challenges that owners face in the off-season. Each section
in the stadium has a distinct demand function, and students
are not made aware of the specifics of this function (i.e. luxury
boxes are certainly more price inelastic than the seats at the
top of the stadium). The demand for seats in a section is not
only a function of price, but of the past performance of the
home and visiting teams, the "big name" stars on each
team, and the population in the market. The results each week
allow students to examine price elasticities and their relationship
to an optimal pricing decision.
gives the commissioner access to the demand functions for each
of the following four sections: lower field seating, middle
mezzanine seating, upper "cheap" seats, and luxury
boxes. The commissioner also may control the demand function
for the four concessions: hot dogs, nachos, beer, and t-shirts.
franchise owners are not privy, of course, to the demand functions.
As a topic in the Economics of Sports course, an instructor
may ask students to estimate the demand functions by collecting
attendance data from the league and generating an OLS regression.
Students choose independent variables and attempt to determine
the effects of these variables on attendance. The analysis will
assist owners in determining their optimal prices to maximize
attendance revenue and concession profits.