Dynamic Pricing Behavior in Perishable Goods Markets: Evidence from Secondary Markets for Major League Baseball Tickets

Sweeting, Andrew

doi:10.1086/669254

Cited by 114 publications

(60 citation statements)

References 40 publications

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“…Such a strategy is still compatible with price reductions, as long as these occur randomly and do not disrupt the overall increasing temporal trend of prices (Deneckere and Peck, 2012;Sweeting, 2012).…”

Section: Factors Expected To Be Positively Associated With Dynamic Prmentioning

confidence: 99%

Are all online hotel prices created dynamic? An empirical assessment

Melis

Piga

2017

International Journal of Hospitality Management

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Abstract:Understanding how tourist firms set their online prices is important due to their growing reliance on Online Travel Agencies (OTA). Little is known, however, about whether differences exist in the online pricing approaches adopted by hotels using an OTA. The article tests, using a big data approach, whether the diffuse narrative of a pervasive presence of dynamic pricing provides a realistic description of hotels' pricing behavior and thus challenges the view that dynamic pricing should be considered the prevailing norm for the industry. The evidence suggests a heterogenous attitude across hotels, with uniform pricing being more widespread in most hotels of our sample, namely, the 3-star or less, while dynamic pricing is more likely applied in higher quality hotels.

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Section: Factors Expected To Be Positively Associated With Dynamic Prmentioning

confidence: 99%

Are all online hotel prices created dynamic? An empirical assessment

Melis

Piga

2017

International Journal of Hospitality Management

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“…Moreover, Su [2007, p. 735] shows that higher prices closer to departure 13 Lazear [1986] also finds decreasing prices over time in a simple two-period model. Moreover, Sweeting [2010] documents the existence of decreasing prices in online resale markets for Major League Baseball tickets.…”

Section: Iii(ii) Dynamic Pricing Estimatesmentioning

confidence: 99%

Dynamic Pricing, Advance Sales and Aggregate Demand Learning in Airlines

Escobari¹

2012

The J Industrial Economics

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This paper uses a unique U.S. airlines panel data set to empirically study the dynamic pricing of inventories with uncertain demand over a finite horizon. I estimate a dynamic pricing equation and a dynamic demand equation that jointly characterize the adjustment process between prices and sales as the flight date nears. I find that the price increases as the inventory decreases, and decreases as there is less time to sell. Consistent with aggregate demand learning and price adjustment, demand shocks have a positive and much larger effect on prices than the positive effect of anticipated sales.

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“…29 A similar pattern arises in the hotel industry: Lee et al (2009) showed that normalized average prices are nearly independent of the number of days before arrival. Sweeting (2010) shows that in the market for baseball tickets, prices are decreasing as the game day approaches, providing a puzzling counterexample to our theory.…”

Section: Empirical Implicationsmentioning

confidence: 73%

Dynamic Competition With Random Demand and Costless Search: A Theory of Price Posting

Deneckere

Peck

2012

Econometrica

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This paper studies a dynamic model of perfectly competitive price posting under demand uncertainty. Firms must produce output in advance. After observing aggregate sales in prior periods, firms post prices for their unsold output. In each period, the demand of a new batch of consumers is randomly activated. Existing customers who have not yet bought and then new customers arrive at the market in random order, observe the posted prices, and either purchase at the lowest available price or delay their purchase decision. We construct a sequential equilibrium in which the output produced and its allocation across consumers is efficient. Thus consumers endogenously sort themselves efficiently, with the highest valuations purchasing first. Transaction prices in each period rise continuously, as firms become more optimistic about demand, followed by a market correction. By the last period, prices are market clearing.

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Dynamic Pricing Behavior in Perishable Goods Markets: Evidence from Secondary Markets for Major League Baseball Tickets

Cited by 114 publications

References 40 publications

Are all online hotel prices created dynamic? An empirical assessment

Are all online hotel prices created dynamic? An empirical assessment

Dynamic Pricing, Advance Sales and Aggregate Demand Learning in Airlines

Dynamic Competition With Random Demand and Costless Search: A Theory of Price Posting

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