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The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry

Pascal Courty¹; Mario Pagliero^2,3

¹ University of Victoria · ² Collegio Carlo Alberto · ³ University of Turin

Concert tickets can be sold at the same price or at different prices that reflect different seating categories. Price discrimination generates about 5% greater revenues than single-price ticketing. The return to price discrimination is higher in markets with greater demand heterogeneity, as predicted by price discrimination theory. The return to an increase from three to four concert seat categories is roughly half that of an increase from one to two.

DOI

10.1162/rest_a_00179

Volume

94 (1)

Pages

359-369

Language

en

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