Navigating Expensive Box Offices.
Our beloved Milwaukee Brewers lost in game seven of the NLCS on Saturday to the LA Dodgers. The series was full of nonstop action and drama between the teams and fans. During the postseason and throughout the NLCS, it became harder and harder for fans to get tickets to the games. The demand for these tickets grew, but the supply did not, there are only so many seats in Miller Park. 41,900 to be exact. As the demand for these play off tickets grew, they also brought with them quite a large price tag. But all of this is now in the past, let’s focus on the next big thing, the World Series.According to StubHub.com, the cheapest tickets you can get for game one of the World Series cost $424.00 for each ticket. At Fenway Park this puts you in the back row of the right field grandstand in section five. Arguably the seats with the worst view of home plate. StubHub also says that the most expensive tickets are $25,000.00 each. This would put you in row A1, right behind home plate. Now let’s look a little deeper into the economics behind all of this. Why would someone pay over $400 to barely see the game. Or why pay $25,000 just to watch a three hour baseball game. Also, how do owners determine the prices of each ticket?
World Series tickets are an inelastic good. The increase in prices causes less then a 1% change in the quantity demanded meaning it’s inelastic. People will still pay observed amounts of money to see these games because quantity is limited. This tells owners that they and raise the prices of tickets and people will still come and buy them. But now the question is, how high is too high for ticket prices? This is where they factor in marginal utility. Marginal utility is a way to determine how much satisfaction a customer will receive from a product. This is why that the worst seats in the house are still so expensive. Even though that person can barely see the games, they are still satisfied with spending $424 just to be at a World Series baseball games. This also applies to the person behind home plate. They are satisfied with paying $25,000 for those seats because the marginal utility received is worth $25,000 to that sold out fan. Also now a broke sold out fan.So, throughout the rest of the World Series, and other big events, look closer at the big price tag on tickets. The prices rise because they are an inelastic good, and the supply is limited. They also go up because the marginal utility is greater than a typical games, and lastly that some people just have way too much disposable income.
Works Cited
Durst, Nicholas. “DGS Staff Predictions: Who Will Win The 2018 World Series? • Double G Sports.” Double G Sports, 2 Oct. 2018, doublegsports.com/who-will-win-the-2018-world-series/.“StubHub!” StubHub, www.stubhub.com/boston-red-sox-tickets-boston-red-sox-boston-fenway-park-10-23-2018/event/103753469/?sort=quality+desc&tktbkt=1.
I remember looking at Brewer ticket prices throughout their games and as they won more and more games, the ticket prices were going up due to the high demand for these tickets. I cannot believe someone would pay 25,000 dollars on a baseball game ticket but if baseball tickets are an ineleastic good, the supplier can charge a high price for those tickets. Also I wonder how ticket prices would change if the Brewers were in the world series just because we haven't made it to the world series in a long time.
ReplyDeleteI can’t believe how high the prices for these tickets can get. I can understand tickets that are around $300, however, $25,000?! That is way too much, but if people are still buying them why not make the prices even higher? I wonder if the Brewers got into the World Series, if the prices of tickets would be a little cheaper. Just from personal opinion, I think that the Brewers have some pretty reasonable prices during the regular season games. I can’t imagine that we would jack up the prices to $25,000, but I guess you gotta do what you gotta do.
ReplyDeleteFor someone who is a huge baseball fan, paying $424 for a ticket is worth it, even if it is the worst seat in the stadium. On the other hand, for someone like myself, who is not a big baseball fan, $424 seems like an outlandish price to pay, especially when I wouldn’t even have a good view of the game. The difference for me versus someone who loves baseball is the marginal benefit. In my opinion the benefits I would receive from watching the game wouldn’t outweigh the price I had to pay, so I wouldn’t purchase tickets, but for the other person, it is the exact opposite. That’s the same reason someone would be willing to pay $25,000 for the best seat in the house, in their eyes, marginal benefit outweighs cost. Ticket sellers are able to charge so much because they know there are people out there who are willing to fork over huge sums of cash, especially when the supply of tickets is limited.
ReplyDeleteYes all of that makes sense and all, but I also think a reason that people pay so much for tickets is because they may never get another chance to see their team play a world series game at their stadium, in their own lifetime. It is essentially a one time chance. My dad said to me on the Friday before game 7, “If the brewers go to the world series, we are going to the game, regardless of the price of the tickets.” If you were a baseball fan and your hometown team went to the championship of their league, would you want to go because you may never get this chance ever again?
ReplyDeleteThey do have theses ticket prices way too high because there are people that can't afforded the tickets and would love to go to the games. They just don't have the money to afford the seats which could make the family sad do to not being able to go to the game.
ReplyDeleteI agree with the fact that some people are selling the world series tickets a little too much but the Red Sox will also be playing in LA as well so many you could have been in more depth about maybe the price comparisons between Fenway Park and Dodger Stadium. Some of the price difference could be a huge factor when paying for a world series ticket (now I may be wrong about different price changes) but you never know if there could be. I also agree with the fact that people are also asking how much is too much when purchasing a ticket because based on the seat the question would really be if they were satisfied with their seat decision and the amount of money they also put into purchasing the ticket as well.
ReplyDeleteIn terms of the Brewers as well, with the games leading up to their loss in game 7, the same inelasticity can be applied to their ticket prices. Before the Brewers were truly thought to have a chance at getting into the world series, the elasticity of their tickets was probably more elastic than not because fans did not care as much about attending a game. The demand for their tickets was down, but supply would've been constant as there is a limited number of tickets. Marginal utility also would've been less as people wouldn't have gotten as much satisfaction or utils from attending a game at an outlandish price. However, once the Brewers entered the play-offs, marginal utility definitely increased as did price and quantity demanded. Though probably not as much as the World Series, fans would've been willing to pay more to support the Brewers. Once the Brewers lost, supply would've fallen to zero as they could no longer play any games (though demand may have still been indignantly high from the fans). It could be argued that this is a shortage of tickets, even though no one else is buying the tickets, as the quantity demanded is definitely over the quantity supplied.
ReplyDeleteNo matter how expensive tickets are, people will still buy them because people are die hard fans for baseball in Milwaukee. Firms, such as the Milwaukee Brewers, are able to jack up their prices because fans aren't going to buy any less of the good... everyone wants to go to the NLCS games. This rise in prices also leads to more revenue for the Brewers, allowing them to make a better fan experience for the crowd. In the end, although a raise in prices may seem like a hassle for consumers, consumers and producers are actually both winners here.
ReplyDeleteI agree with how the amount of tickets that are sold may go up a bit with standing room, but the prices go up with scalpers and people trying to make money off tickets. The MLB is trying to end scalping with having an app where you have to claim your tickets and can only access them through the app.
ReplyDeleteSince the Brewers were performing at a high level this season more people were interested in watching them play therefore the tickets were at a high demand and the prices were increased due to more people coming and more profits to be made. Also playing into effect the later part into the postseason tickets are at the highest demand and the highest price because they are the most important games of the year, so high demand in fans equals high prices in tickets.
ReplyDeleteThe Brewers can jack the prices up for games its such a big and exciting things that does not happen very often and no matter how much you jack the prices up people will buy them because they love the Brewers so much. This kinda thing for the Brewers does not happen very often so the fans are going to spend the money to say I went to that game.The rise in prices is amazing revenue for the Brewers because now the fans can have a better experience at the games and have more fun. The money you have to pay for some seats is outrageous. In the end the consumers and producers are both getting a great deal in how expansive the tickets cost.
ReplyDeleteAs Noah said you can see this throughout all sports. Yes it may seem ridiculous but if you had the money and you were an avid fan of a professional sports team, you're going to buy the tickets. Another factor to is just the location and the history behind the team. For example, last year at the NBA Finals whenever the game was in Cleveland the average ticket was around $600. But when the games we're in Oakland the tickets average $1,100. Just looking at that you can see how much location is a factor, Cleveland fans were definitely hardcore last year (until LeBron left), that's not the main reason why they were so much cheaper. The real reason is the sheer fact that the game is in Cleveland, OH and not Oakland, CA. But as Noah said tickets are a inelastic good and it doesn't matter the price as long as you get to cheer on your home team.
ReplyDeleteI think that because of the Brewer's successful season, people were more likely to buy tickets at a higher price. It also depends of how big of a fan they are, because I couldn't justify spending $500 to $25,000 dollars on a game ticket and that is because I am not that big of a fan. But I totally understand why some other people who are bigger fans would spend that much money. I think this is very similar to concert tickets or broadway show tickets.
ReplyDeleteThe success of the Brewers this season only increased the demand. Though some would argue that the ticket rise isn't a bad thing as it reflects consumers willingness to pay and the most avid fans who are willing to pay the high prices will be the ones who end up with tickets. I never thought about marginal utility being increased due to the importance of the game which will in turn increase the demand and willingness to pay.
ReplyDeleteIt's crazy to think about how significantly marginal benefit plays a role in this. You can make the determination that most of these ticket holders are probably about 30 years or younger because it has been that many years since the Brewers had been a championship contender. There have been many disappointing years for Brewers fans and this has become a once in a lifetime opportunity that Brewers fans can't afford to miss out on. Fans will spend 400+ dollars on a ticket if they have to and it's crazy to think about.
ReplyDeleteBraden Kozlik
DeleteI was hard to see the Brewers incredible post-season come to an end in game 7. Not only did fans want to see the Brewers in the World Series, but Milwaukee losing a huge asset to their economy. Without a doubt, beer and other traditional Wisconsin food item sales would've gone up tremendously as well as people going out to bars and restaurants to watch the games if the Brewers made it to the World Series. Obviously the demand for tickets would go up as well as the prices for those tickets since the entire season comes down to one last series. It is hard to see the Brewers season to come to an end, but it is just as hard to see what Milwaukee's economy could've had if the Brewers won.
ReplyDeleteThe thought of spending 25,000 dollars is absolutely abused and is definitely a transition that will ever come out of my bank account, but not everyone feels the same way. The article really touches on the fact that people that are die hard fans do not look at the price tag when it comes to their team going to the world series. That makes perfect sense as to why the demand is inelastic. You can then translate this to all of the other sports that are popular throughout the nation. Take the Superbowl for example, no matter what the price those die hard fans are still willing to pay thousands of dollars to see them play. This article really provides great insight as to how much people are willing to pay when it comes to seeing their team play in the final games.
ReplyDeleteThe price increase of World Series tickets does seem a bit crazy at times, as many ask themselves why consumers would pay up to $25,000 just to watch a baseball game. However, as the marginal utility increases, relating to better seating, the total utility of consumers will also increase, which is why many find it worth the price increase. Most ticket buyers feel that the satisfaction they receive from watching a World Series game with excellent seats outweighs the negatives of paying large amounts of money. While this may seem a bit absurd, when you think about something you are specifically passionate about, wouldn't you pay a high price for something you greatly desire as well?
ReplyDeleteSince the Milwaukee fans were thrilled about the great performances, they would have bought tickets without considering the price being too expansive, as they are going for the experience. This shows how to Milwaukee fans, the game tickets are an inelastic good. The quantity demanded does not change with a price change. I believe the prices would've gone up even further if the Brewers would have made it to the World Series, and Miller Park would still be fully packed.
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