Persistent Shortage In The Sports Industry
Persistent shortages occur for several reasons in the sports industry. Owners price tickets low when they have incentives from the community to do so, and gain popular support from fans. In doing so, this causes excess demand and low supply due to fixed number of seats available in the stadium.
Prices are also set low due to the inability to predict demand elasticity when supply is based on the capacity in the stadium and there is no change in demand when the prices are changed. Maintaining low ticket prices and driving sales also increases the sales of concessions, parking and other amenities while attending the sporting event. Increased attendance is also proven to give the team home field advantage and a winning season which promotes
Prices are also set low due to the inability to predict demand elasticity when supply is based on the capacity in the stadium and there is no change in demand when the prices are changed. Maintaining low ticket prices and driving sales also increases the sales of concessions, parking and other amenities while attending the sporting event. Increased attendance is also proven to give the team home field advantage and a winning season which promotes