Friday, June 25, 2010

The Economics of Watching Big Papi and the Rest of the BoSox

The San Francisco Giants use a  "dynamic pricing" system when they sell their tickets to individual games. Bottom line: They get supply and demand. Left field seats for Giants' games, for example, against the Boston Red Sox are being sold for $57.50.

Those same seats sold on June 15 for an evening game against the Orioles for $6.00.

According to SFChron:

It's all about rolling supply and demand, as processed by a Texas startup's software, which the Giants first experimented with on 2,000 outfield seats last season, and now applies to all 41,500 at AT&T Park...Last season's pilot program brought $500,000 in added revenue. This year, according to [Giants president Larry Baer, "we're looking at an upside of 5 to 7 percent" over anticipated ticket revenue of $100 million. Ticket sales so far this season are up 12 percent, Baer said. And while other factors may have been in play, dynamic pricing seems not to have hurt. "No way could we have gotten the numbers for the Orioles series" (approximately 35,000 per game) "without it," he said...

Everyone's watching what the Giants are doing," [says]Joris Drayer, a professor of sports management at the University of Memphis..."This is the wave of the future," Baer said.


  1. I don't know if it's as sophisticated but I have seen bars where the drinks prices are on some kind of actual or pseudo-supply and demand dynamic pricing system and it doesn't seem to do anything besides piss off the patrons of the bar and make them want to go somewhere else as they usually end up charging $9 for a Bud Light by the end of the night!

    But this sounds pretty cool

  2. You need to label it properly, for the non-economists who don't appreciate supply and demand. E.g. "Happy Hour"