The effects of pricing strategies on team revenues in the national Hockey League

Wen Jhan Jane, Masaru Sasaki, Jye Shyan Wang

Research output: Contribution to journalReview article

Abstract

This paper investigates the effects of price discrimination on a team’s revenue in the National Hockey League (NHL) for the seasons from 2005/06 to 2014/15. The present research contributes to the literature in three ways. First, the empirical evidence shows that price discrimination increases team revenue. An additional ten-dollar increase in price discrimination brings a team an additional 0.76% in seasonal revenues. Second, raising prices increases overall team revenues. The evidence supports the hypothesis of inelastic pricing in the professional sports leagues. Third, an older team with a larger and historic stadium that performs better makes more money. All these findings are supported when the unobservable individual effects are controlled for.

Original languageEnglish
Pages (from-to)84-96
Number of pages13
JournalInternational Journal of Sport Finance
Volume14
Issue number2
DOIs
Publication statusPublished - 2019 Jan 1

Keywords

  • Inelastic pricing
  • National Hockey League
  • Price discrimination
  • Pricing strategy
  • Team revenues

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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