Major League Baseball: Dynamic Ticket Pricing and Measurement Costs

This paper discusses dynamic ticket pricing by Major League Baseball and how it applies to the measurement or transaction explanation of pricing. Key reductions in the cost of measuring margins that vary in value, such as the win/loss record of the opposing team, are identified, and these reductions in measurement cost help explain the switch from static to variable to dynamic pricing of tickets. Instructors of intermediate microeconomics and managerial economics that wish to discuss dynamic pricing may find this example interesting to sports oriented students.