Determinants of Dynamic Pricing Premiums in Major League Baseball, pp. 152-165

Rodney J. Paul
Andrew P. Weinbach

Dynamic pricing, well-known in the airline and hotel industries, has now been adopted by a handful of Major League Baseball teams in relation to pricing of tickets for their home games. Using data from four teams for the 2011 season, we examine the role that a variety of factors play in explaining differences in ticket prices across games throughout the season for these teams. Key factors such as the day of the week, opponent promotions, starting pitcher, and weather are investigated to shed light on the determinants of the willingness to pay of baseball fans for these teams under a dynamic-pricing strategy.