Price Elasticity of Ticket Demand in the Professional Basketball League in Japan: Simulating Ticket Purchase Rates using Conjoint Analysis

Hiroaki Ninomiya

This study uses conjoint analysis to investigate the price elasticity of ticket demand in the professional basketball league in Japan, the bj-league. Three variables—game day, opposition team, and ticket price—are explored in the research design. Primary data obtained from 368 bj-league spectators are used to explore ticket preferences by seat type (reserved seat A, reserved seat B, nonreserved seat). The sensitivity of ticket purchase rate to the fluctuations in virtual ticket prices is estimated through simulation. The simulation that operationalized ticket price shows that the ticket purchase rate for popular teams is less sensitive to fluctuations in the ticket prices for reserved seat B and nonreserved seat spectators. This study suggests that the price elasticity of ticket demand is relatively elastic for high-priced tickets and relatively inelastic for lowpriced tickets.