Primary Market Dynamic Pricing for Sports Tickets: Theory and Application
In professional sports, fan attendance at games is one of the largest drivers of revenue and a significant focus for all sports teams. While sports tickets can benefit from dynamic pricing techniques developed for airlines or hotels, they have constraints related to limited inventory, season tickets...
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Published: |
Massachusetts Institute of Technology
2022
|
| Online Access: | https://hdl.handle.net/1721.1/144487 |
| _version_ | 1811078845372039168 |
|---|---|
| author | Hylen, Spencer David |
| author2 | Hosoi, Anette |
| author_facet | Hosoi, Anette Hylen, Spencer David |
| author_sort | Hylen, Spencer David |
| collection | MIT |
| description | In professional sports, fan attendance at games is one of the largest drivers of revenue and a significant focus for all sports teams. While sports tickets can benefit from dynamic pricing techniques developed for airlines or hotels, they have constraints related to limited inventory, season tickets, and the attendance-revenue trade-off that make them unique and difficult to price with existing dynamic pricing systems. In this work, we present a novel dynamic pricing strategy for sports tickets, developed with an engineering approach alongside primary market ticket data provided by the San Antonio Spurs. Using dynamic programming and matrix completion for modeling customer demand, we provide optimal price recommendations for all time periods before a game. We use these recommendations, along with information on current prices, to provide a suite of ticket price optimization and analysis tools. These tools are led by our Manual Price Adjustment Guide, which combines our optimal price recommendations with ticketing analyst expertise for a hybrid solution designed to improve ticket pricing and increase team revenue. |
| first_indexed | 2024-09-23T11:06:18Z |
| format | Thesis |
| id | mit-1721.1/144487 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T11:06:18Z |
| publishDate | 2022 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1444872022-08-30T03:44:21Z Primary Market Dynamic Pricing for Sports Tickets: Theory and Application Hylen, Spencer David Hosoi, Anette Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science In professional sports, fan attendance at games is one of the largest drivers of revenue and a significant focus for all sports teams. While sports tickets can benefit from dynamic pricing techniques developed for airlines or hotels, they have constraints related to limited inventory, season tickets, and the attendance-revenue trade-off that make them unique and difficult to price with existing dynamic pricing systems. In this work, we present a novel dynamic pricing strategy for sports tickets, developed with an engineering approach alongside primary market ticket data provided by the San Antonio Spurs. Using dynamic programming and matrix completion for modeling customer demand, we provide optimal price recommendations for all time periods before a game. We use these recommendations, along with information on current prices, to provide a suite of ticket price optimization and analysis tools. These tools are led by our Manual Price Adjustment Guide, which combines our optimal price recommendations with ticketing analyst expertise for a hybrid solution designed to improve ticket pricing and increase team revenue. M.Eng. 2022-08-29T15:50:49Z 2022-08-29T15:50:49Z 2022-05 2022-05-27T16:19:53.063Z Thesis https://hdl.handle.net/1721.1/144487 In Copyright - Educational Use Permitted Copyright MIT http://rightsstatements.org/page/InC-EDU/1.0/ application/pdf Massachusetts Institute of Technology |
| spellingShingle | Hylen, Spencer David Primary Market Dynamic Pricing for Sports Tickets: Theory and Application |
| title | Primary Market Dynamic Pricing for Sports Tickets: Theory and Application |
| title_full | Primary Market Dynamic Pricing for Sports Tickets: Theory and Application |
| title_fullStr | Primary Market Dynamic Pricing for Sports Tickets: Theory and Application |
| title_full_unstemmed | Primary Market Dynamic Pricing for Sports Tickets: Theory and Application |
| title_short | Primary Market Dynamic Pricing for Sports Tickets: Theory and Application |
| title_sort | primary market dynamic pricing for sports tickets theory and application |
| url | https://hdl.handle.net/1721.1/144487 |
| work_keys_str_mv | AT hylenspencerdavid primarymarketdynamicpricingforsportsticketstheoryandapplication |