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SPORTS FINANCE

4. The NFL’s Houston Oilers left Texas to become the Tennessee Oilers for the 1997 season. They

changed their name to the Tennessee Titans and moved into their new Adelphia Stadium for the

1999 season. Interestingly, their lowest-priced individual tickets were priced at $12, while their

lowest-priced season ticket cost $250. Given that there are only eight home games, why didn’t

fans just buy individual tickets rather than season tickets? Is this price discrimination or not?

Explain.

5. In addition to the lowest-priced arrangements in the last question, the Tennessee Titans’

highest-priced individual tickets in 1999 were $52, while the highest-priced season ticket was

$2,500. Relative to the lowest-priced arrangements, is the highest-priced arrangement price

discrimination? Why? Suppose that the $2,500 included a $1,000 personal seat license. Is this

price discrimination compared to charging no personal seat license? Explain.

9. Why would it be inadvisable for sports teams to sell all of their seats as season tickets even if they

could? That is, why don’t as many teams as possible aim for season-ticket only sellouts for the

season?

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