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From: paula@koufax.cv.hp.com (Paul Andresen)
Subject: Re: MLB = NBA?
Message-ID: <1993Apr20.184520.24622@hpcvaac.cv.hp.com>
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References: <1993Apr17.052025.10610@news.yale.edu> <93108.165218RVESTERM@vma.cc.nd.edu> <mssC5qrrz.91H@netcom.com> <kbanaian.495.735252811@bernard.pitzer.claremont.edu>
Date: Tue, 20 Apr 1993 18:45:20 GMT
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In article <kbanaian.495.735252811@bernard.pitzer.claremont.edu>, kbanaian@bernard.pitzer.claremont.edu (King Banaian) writes:
|> 
|> There is absolutely, positively, quite verifiably, NO causation that runs 
|> from salaries to ticket prices.  The two are separable decisions.  The 
|> owners do not raise ticket prices to recoup costs;  they raise ticket prices 
|> because demand for seats has risen.  (Wish I had bold type for that "NO".)
|> 
|> For more evidence, please come to my Intro to Econ course, somewhere around 
|> lecture four:  Sunk Costs, Opportunity Costs, Marginal Costs.

Right on. Ticket prices are set to maximize revenue. Period. For an excellent
discussion on how this works, see Gerald Scully's book of a couple of years
back, titled (I think) "The Business Of Baseball".
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  paula@koufax.cv.hp.com   Paul Andresen  Hewlett-Packard  (503)-750-3511

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