Working Paper: CEPR ID: DP7120
Authors: Pascal Courty; Mario Pagliero
Abstract: Concert tickets can either be sold at a single price or at multiple prices corresponding to different seating categories. We study the relationship between price discrimination and revenue by examining variations in the number of seating categories across concert, tour, artist, location, and time. Offering multiple seating categories leads to revenues that are approximately 5 percent higher than with single price ticketing. The return to price discrimination is higher in markets with more heterogeneous demand, in smaller venues and in more competitive markets. The return of increasing from three to four categories of seating is about half that of increasing from one to two.
Keywords: Price Discrimination; Return to Price Discrimination; Second Degree Price Discrimination
JEL Codes: D42; L82; Z11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market heterogeneity (D40) | price discrimination (D40) |
| venue size (R12) | price discrimination (D40) |
| local income (H79) | price discrimination (D40) |
| population heterogeneity (J11) | price discrimination (D40) |
| price discrimination (D40) | revenue (H27) |
| multiple seating categories (Y90) | revenue (H27) |