From the course: The Data Science of Sports Management, with Barton Poulson

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Ticket pricing algorithms

Ticket pricing algorithms

From the course: The Data Science of Sports Management, with Barton Poulson

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Ticket pricing algorithms

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- [Instructor] If you've spent any time in the office of a performing arts company, then you know that ticket sales account for only a fraction of the company's revenue. The same thing is true in Major League Baseball, where ticket sales make up about 30% of the league's revenue. The rest comes from things like televised broadcasts, merchandise sales, naming rights for the stadium, and so on. But you want to make the most of that 30%, so you do things to maximize your ticket revenue. Empty seats are bad, but so are underpriced seats, and letting ticket scalpers get the extra value, that's the worst of all. So, baseball teams have taken a page from Broadway's playbook and adopted dynamic pricing for seats. Here's how dynamic pricing works for Broadway musicals. You get a successful show, like Disney's The Lion King. This has been running in the same theatre for years and Disney has data on over 10,000,000 ticket sales for that show. As a result, they are able to set seat-by-seat prices…

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