No wonder Kovy got out as soon as possible ...I don't blame the guy ...I wouldn't want to play in Seattle either

No wonder Kovy got out as soon as possible ...I don't blame the guy ...I wouldn't want to play in Seattle either
- keatondixon

I dont think anyone would want to watch you attempt to play hockey anyways

According to Tom Gulitti, Gary Bettman reports NHL has plans to take over Devils is inaccurate
- matty_ice_30

in gulitti we trust.

your forgetting concessions + parking plus all the crap people buy.
- PhillaBully

Yes that obviously plays a huge factor which is why its very complicated.

Yes, which is why there is an equilibrium price which results in the highest revenues. Variable pricing is still related to demand. As with any service based business part of the growing the business is getting a larger customer base and keeping that customer base, so a team might sacrifice a little revenue short term for the long term. Its far from the increase ticket prices --> increase revenues model you tried to explain.
- rmdevil313

While you are correct when you say there is a price that equals the highest revenue, its not necessarily the equilibrium price. The equilibrium price is where supply meets demand, and thats usually the highest revenue point in micro or macroeconomics 101 to keep things simple, but once you get into real world economics, you start to see variable pricing and discrimintory monopolies/price discrimination in ticket pricing where the equilibrium price is not the highest point of revenue.

I might have made it sound simpler than I intended when I said higher ticket prices equals higher revenue, but higher ticket prices is certainly an option owners might consider to bring in more revenue if they are losing money and if the math works out and they estimate that they'd bring in more money while sacrificing selling out every single night, then they could do it.

So this is what being a Coyotes fan feels like!

While you are correct when you say there is a price that equals the highest revenue, its not necessarily the equilibrium price. The equilibrium price is where supply meets demand, and thats usually the highest revenue point in micro or macroeconomics 101 to keep things simple, but once you get into real world economics, you start to see variable pricing and discrimintory monopolies/price discrimination in ticket pricing where the equilibrium price is not the highest point of revenue.

I might have made it sound simpler than I intended when I said higher ticket prices equals higher revenue, but higher ticket prices is certainly an option owners might consider to bring in more revenue if they are losing money and if the math works out and they estimate that they'd bring in more money while sacrificing selling out every single night, then they could do it.
- rangerdanger94

Variable pricing and price discrimination is all based on demand. Variable pricing just looks at demand at an individual game basis. So the devils charge more for a game against the rangers knowing there is a much larger group looking for tickets and they can sell out at raised prices. A midweek game against the florida panthers would be one to offer discounts and ticket deals as there is no draw to that game. Price discrimination does the same thing. College kids are generally broke and cannot afford the normally priced tickets. There are games like midweek against the florida panthers with extra seats to sell so you offer any college kid a ticket for 20 bucks.

Teams don't always run at their optimal levels as I mentioned in my previous post. But its mostly because you are looking to grow the brand in the long run. If you have high prices, only fans of the team will go. You won't get any person unfamiliar with the team or sport to go if its very pricey. If a team can raise ticket prices and it raises their revenues they either were not running at their optimum level previously or don't need to attract new fans to the arena. You say "higher ticket prices is certainly an option owners might consider to bring in more revenue if they are losing money and if the math works out " that math is the demand. Its not "oh poop we just signed ryane clowe, better raise the prices so we have the money to pay him.

So this is what being a Coyotes fan feels like!
- MannySilvers

Ek just said the rumors were overblown, so I guess this means we are moving to Quebec.

Ek just said the rumors were overblown, so I guess this means we are moving to Quebec.
- rmdevil313

http://www.nj.com/essex/i...he_next_several_days.html

http://www.nj.com/essex/index.ssf/2013/08/devils_likely_to_be_sold_within_the_next_several_days.html
- shvingter88

Investors are lining up to buy our debt. It has to be to move the team.

Investors are lining up to buy our debt. It has to be to move the team.
- rmdevil313

Las Vegas here we come

Variable pricing and price discrimination is aldemand on demand. Variable pricing just looks at demand at an individual game basis. So the devils charge more for a game against the rangers knowing there is a much larger group looking for tickets and they can sell out at raised prices. A midweek game against the florida panthers would be one to offer discounts and ticket deals as there is no draw to that game. Price discrimination does the same thing. College kids are generally broke and cannot afford the normally priced tickets. There are games like midweek against the florida panthers with extra seats to sell so you offer any college kid a ticket for 20 bucks.

Teams don't always run at their optimal levels as I mentioned in my previous post. But its mostly because you are looking to grow the brand in the long run. If you have high prices, only fans of the team will go. You won't get any person unfamiliar with the team or sport to go if its very pricey. If a team can raise ticket prices and it raises their revenues they either were not running at their optimum level previously or don't need to attract new fans to the arena. You say "higher ticket prices is certainly an option owners might consider to bring in more revenue if they are losing money and if the math works out " that math is the demand. Its not "oh poop we just signed ryane clowe, better raise the prices so we have the money to pay him.
- rmdevil313

Obviously its based on demand....but its not necessarily where supply equals demand.

If im an owner and im in the green but not selling out, then im willing to lower my price to make less money but to sell out. But if im losing millions of dollars a year, then I might say fck the fans and fck selling out, we're gonna try to maximize prices and raise all ticket prices and concessions whether it be a few bucks per ticket or a dollar per burger.

at the end of the day, neither of us know whats really going on behind the scenes and were really just talking out our asses based off our basic college economics courses.

Investors are lining up to buy our debt. It has to be to move the team.
- rmdevil313

Haha imagine tho if someone does buy the team and move it to seattle? That would suck.

Thanks guys for the quick refresh of my economics classes

Obviously its based on demand....but its not necessarily where supply equals demand.

If im an owner and im in the green but not selling out, then im willing to lower my price to make less money but to sell out. But if im losing millions of dollars a year, then I might say fck the fans and fck selling out, we're gonna try to maximize prices and raise all ticket prices and concessions whether it be a few bucks per ticket or a dollar per burger.

at the end of the day, neither of us know whats really going on behind the scenes and were really just talking out our asses based off our basic college economics courses.
- rangerdanger94

Actually its a pretty safe bet a franchise wroth 100s of millions is going to maximize their revenues. Franchises are a business just as much as they are a hockey team. As an average joe its easy to say you'd be willing to lower ticket prices for the fans but that's not how people worth billions got to be worth billions. I am not even sure there is one owner in professional sports that isn't trying to maximize its revenues. Its why food and beer is overpriced in every single arena. Its why no team lowered their ticket prices (unless they had to like Phoenix) when gary bettman said the salary cap would allow certain teams to lower the ticket prices.

The reason why the price isn't always equal to its equilibrium is that businesses sometimes have to take short term losses for long term gain. A team cannot simply charge more than the equilibrium price and gain revenues, like you originally suggested, otherwise that original price was not its equilibrium.

Thanks guys for the quick refresh of my economics classes
- K-dizzle

Test is on monday. Tuesday is chapter 2.

Test is on monday. Tuesday is chapter 2.
- rmdevil313

Happy to say I graduated in May with a Biology degree. Economics

Actually its a pretty safe bet a franchise wroth 100s of millions is going to maximize their revenues. Franchises are a business just as much as they are a hockey team. As an average joe its easy to say you'd be willing to lower ticket prices for the fans but that's not how people worth billions got to be worth billions. I am not even sure there is one owner in professional sports that isn't trying to maximize its revenues. Its why food and beer is overpriced in every single arena. Its why no team lowered their ticket prices (unless they had to like Phoenix) when gary bettman said the salary cap would allow certain teams to lower the ticket prices.

The reason why the price isn't always equal to its equilibrium is that businesses sometimes have to take short term losses for long term gain. A team cannot simply charge more than the equilibrium price and gain revenues, like you originally suggested, otherwise that original price was not its equilibrium.
- rmdevil313

Damn You know your shat.

Happy to say I graduated in May with a Biology degree. Economics
- mighty13duck

I probably would have failed if I chose any science as my major.

Damn You know your shat.
- mighty13duck

At least my education got me something. This really isn't advanced stuff though. I took whole classes on supply and demand theory, which was very exciting stuff...

Test is on monday. Tuesday is chapter 2.
- rmdevil313

I won't be here on monday can I get a make up date?

Good to see all of the smartest and brightest on today's blog.

Haha imagine tho if someone does buy the team and move it to seattle? That would suck.
- rangerdanger94

Totally!

Actually its a pretty safe bet a franchise wroth 100s of millions is going to maximize their revenues. Franchises are a business just as much as they are a hockey team. As an average joe its easy to say you'd be willing to lower ticket prices for the fans but that's not how people worth billions got to be worth billions. I am not even sure there is one owner in professional sports that isn't trying to maximize its revenues. Its why food and beer is overpriced in every single arena. Its why no team lowered their ticket prices (unless they had to like Phoenix) when gary bettman said the salary cap would allow certain teams to lower the ticket prices.

The reason why the price isn't always equal to its equilibrium is that businesses sometimes have to take short term losses for long term gain. A team cannot simply charge more than the equilibrium price and gain revenues, like you originally suggested, otherwise that original price was not its equilibrium.
- rmdevil313

Lol a team CAN and DOES charge more than its equilibrium price. Equilibrium price only means where supply meets demand, not the maximum point of revenue, unless you're talking about entry level ultra simplistic economics...like high school level.

When a team charges ticket prices, it has no idea what the demand is. It can only estimate it, and when you estimate, you are at risk of overstating or understating the demand. And again, a team can charge more per ticket and not sell out (so its not at the equilibrium point) and still generate more revenue than it would at the equilibrium price. If you cant understand that, im not sure its worth going further into this discussion.

I won't be here on monday can I get a make up date?
- NickA

I know that's how the cheaters succeed. I will lower your grade one letter for each extra day. I'm a no nonsene professor.