August 2011
Intermediate to advanced
500 pages
17h 16m
English
Content preview from Sports Finance and Management
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Pricing Strategies ◾ 367
a third party. MLB calls this a “postseason ticket reservation.” For the 2010 sea-
son, fans were able to buy these reservations for either a division series for $10, a
league championship series for $15, or the World Series for $20. Given that each
household is supposed to be limited to one game, two tickets per series, this led to
a maximum price of $90 for postseason reservations. Given what we know about
demand, one would think that the optimal price would be dierent for dierent
teams. For example, one would suspect that the value of such an option would be
higher for the New York Yankees than the Pittsburgh Pirates. Not only are there
more fans in New York to buy tickets, but the probability of the Yankees appea ...
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