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.
- rangerdanger94

Uhhhhhh.... The equilibrium price is where a business maximizes its revenues. Its not where the arena sells out but where it can make the most money. If your price is below the equilibrium, it increases the demand but does not maximize its profitability, aka a shortage. If the price exceeds the equilibrium, it lowers demand and does not maximize profitability, aka a surplus. You cannot just use your arbitrary example: "Also, say there are 10,000 seats and the stadium sells out if the tickets are $20 each. Thats $200,000 of revenue. Now say they raise the ticket prices to $30 but only sell 7,500 seats . Thats a revenue of $225,000, $25,000 more even though they sold less seats." and say that's proof that teams can charge more than its equilibrium and still maximize its revenues. In your situation, disregarding any other sources of revenue the $30 ticket prices is, or at least is closer to the equilibrium. The market dictates what the demand is and how much you should charge for a product. What you propose is some sort of infinite profitability market that cannot exist in any economy.

Also, its understood that the equilibrium price is an estimate. Its why business of any kind hire people to do tons of research on really anything that could effect the sale of a product. If they overestimate the price one year, they readjust accordingly. Same if they underestimate. Again, its determined by the market not, "holy poop we signed clowe to a bad deal, let's raise prices to raise revenues."

Uhhhhhh.... The equilibrium price is where a business maximizes its revenues. Its not where the arena sells out but where it can make the most money. If your price is below the equilibrium, it increases the demand but does not maximize its profitability, aka a shortage. If the price exceeds the equilibrium, it lowers demand and does not maximize profitability, aka a surplus. You cannot just use your arbitrary example: "Also, say there are 10,000 seats and the stadium sells out if the tickets are $20 each. Thats $200,000 of revenue. Now say they raise the ticket prices to $30 but only sell 7,500 seats . Thats a revenue of $225,000, $25,000 more even though they sold less seats." and say that's proof that teams can charge more than its equilibrium and still maximize its revenues. In your situation, disregarding any other sources of revenue the $30 ticket prices is, or at least is closer to the equilibrium. The market dictates what the demand is and how much you should charge for a product. What you propose is some sort of infinite profitability market that cannot exist in any economy.

Also, its understood that the equilibrium price is an estimate. Its why business of any kind hire people to do tons of research on really anything that could effect the sale of a product. If they overestimate the price one year, they readjust accordingly. Same if they underestimate. Again, its determined by the market not, "holy poop we signed clowe to a bad deal, let's raise prices to raise revenues."
- rmdevil313

hey nerd i'm just trying to talk about sports

Uhhhh... The equilibrium price is where a business maximizes its revenues.not where the arena sells out but where it can make the most money. If your price is below the equilibrium, it increases the demand but does not maximize its profitability, aka a shortage. If the price exceeds the equilibrium, it lowers demand and does not maximize profitability, aka a surplus. You cannot just use your arbitrary example: "Also, say there are 10,000 seats and the stadium sells out if the tickets are $20 each. Thats $200,000 of revenue. Now say they raise the ticket prices to $30 but only sell 7,500 seats . Thats a revenue of $225,000, $25,000 more even though they sold less seats." and say that's proof that teams can charge more than its equilibrium and still maximize its revenues. In your situation, disregarding any other sources of revenue the $30 ticket prices is, or at least is closer to the equilibrium. The market dictates what the demand is and how much you should charge for a product. What you propose is some sort of infinite profitability market that cannot exist in any economy.

Also, its understood that the equilibrium price is an estimate. Its why business of any kind hire people to do tons of research on really anything that could effect the sale of a product. If they overestimate the price one year, they readjust accordingly. Same if they underestimate. Again, its determined by the market not, "holy poop we signed clowe to a bad deal, let's raise prices to raise revenues."
- rmdevil313

No, you are wrong. The equilibrium price is where supply meets demand aka selling out. That is only the highest point of revenue in a perfectly competitive market which only exists in theory and textbooks and not in real life.

You need to brush up on your economics.

No, you are wrong. The equilibrium price is where supply meets demand aka selling out. That is only the highest point of revenue in a perfectly competitive market which only exists in theory and textbooks and not in real life.

You need to brush up on your economics.
- rangerdanger94

While you are correct. "In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change."

It has zero relevance. Pru Center is not going to reduce the amount of seats available (until the Devils are moved to Quebec), demand doesn't necessarily change just because of ticket price it is also impacted by signing or drafting a superstar, (see Pittsburgh) or team performance. The new owners will simply charge what they can to make the most money. If they sell an average of 15,000 tickets at $50 they net 750K a game, if they sell an average of 14,000 at $60 they net 840k a game. No ones going to cry over some empty seat if they are making money.

hey nerd i'm just trying to talk about sports
- MrToast

The nerve of some people eh?

No, you are wrong. The equilibrium price is where supply meets demand aka selling out. That is only the highest point of revenue in a perfectly competitive market which only exists in theory and textbooks and not in real life.

You need to brush up on your economics.
- rangerdanger94

You are right. My bad, call me stupid or whatever. I misread one of your posts and kinda got turned around in what I was saying. Bottom line is a team can't just raise ticket prices because they need more revenue.

hey nerd i'm just trying to talk about sports
- MrToast

How bout them red bulls?

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.
- rmdevil313

Fine i'll be withdrawing then sir. Sorry for wasting everyone's time. Guess the meth labs getting reopened.

Any news on the Seattle Devils jersey reveal?

Any news on the Seattle Devils jersey reveal?
- MannySilvers

yeah and it says kovalchuk on the back

How bout them red bulls?


- rmdevil313

I was only interested when they were the Metrostars (blatant lie)