Determinants of ticket prices in the secondary ticket market and the effects of COVID-19: empirical evidence from NBA ticket price data analytics

Abstract

Purpose

Scholars note there are limited studies analyzing ticket price determinants. Using the common seat approach, the authors sought to advance this line of research by analyzing determinants of National Basketball Association (NBA) ticket prices in the secondary ticket market. The authors’ research seeks to ask two questions. The first is how ticket prices in the secondary market are associated with common determinants of consumer demand. The second question is what impact the COVID-19 pandemic has on ticket prices in the secondary market.

Design/methodology/approach

Ticket prices of NBA regular season games in the 2021–2022 season were collected a week before the game day from Ticketmaster.com. A regression model was estimated with a group of independent variables: income, population, consumer preference, quality of viewing, quality of contest and pandemic (the number of COVID-19 cases).

Findings

Results indicate income, population, consumer preferences (e.g. team quality and star players) and quality of viewing (e.g. arena age and weekend) impact prices. Further, the number of COVID-19 cases did reduce the ticket price.

Originality/value

The present study illuminates the theoretical significance of analyzing ticket prices as a proxy of demand in professional sport, while providing practical implications regarding the potential opportunity to increase revenue.

Citation

Hyun, M. and Soebbing, B.P. (2023), "Determinants of ticket prices in the secondary ticket market and the effects of COVID-19: empirical evidence from NBA ticket price data analytics", Sport, Business and Management, Vol. 13 No. 4, pp. 489-505. https://doi.org/10.1108/SBM-11-2022-0101