讲座：Contingent Tickets in Sports Marketing: Advance Selling with Product Uncertainty and Service Capacity Constraint
题 目：Contingent Tickets in Sports Marketing: Advance Selling with Product Uncertainty and Service Capacity Constraint
嘉 宾：Peng Wang, doctoral candidate in Marketing, University of Arizona
时 间：2019年1月4日（周五） 13:30—15:00
地 点：上海交通大学 徐汇校区新上院S204室
This paper proposes a new pricing model for markets where the product is sold in advance with attribute uncertainty and capacity constraint. A typical example is tournament ticket sales for sports events where it is uncertain whether a particular team will appear in the game. The model enables the firm to sell tickets in a contingent fashion—i.e., some tickets will be valid only if a certain team gets into the game. When consumers (fans) have sufficiently different preferences for different products (games with different teams), selling these “contingent tickets” better matches the price with the willingness-to-pay of particular consumer segments (fans of specific teams). By allowing for both state-based and belief-based price discrimination, contingent tickets generate a higher margin per seat for the firm than the traditional way of selling general tickets. This is especially true when the firm faces acute supply constraints. We further show that the proposed pricing model for advance selling continues to be advantageous in the presence of secondary markets where consumers purchase tickets in advance but can trade tickets once they know which team will be in the game. We discuss managerial implications of the contingency pricing model for advance selling and how it can be implemented in practice.
Peng Wang is a doctoral candidate in Marketing at the University of Arizona, Eller College of Management. In his research, Peng adopts both analytical and empirical methods to understand business phenomena surrounding the theme of product and pricing innovation. His dissertation examines how crowdfunding, an increasingly popular way for entrepreneurs to launch and sell new products, impacts both entrepreneurs’ strategy (essay 1) and investors’ collective decision-making (essay 2). Besides, Peng has research interests in sports marketing, platform business, and digital piracy. In a separate paper under review at Management Science, he developed a profit enhancing ticket selling method that is tailored to the unique features of sports events, including capacity constraints, game uncertainty, and preference heterogeneity.