Ohio State to raise ticket prices?

[MaxBuck]

Not to turn this into an economics discussion, but a change in price doesn't shift a demand curve at all.

Not to continue this as an economics discussion (yet that's what it has been since the OP), but changes in price do tend to shift the demand curve over time to some extent.

 

[MaxBuck]

Tony Gerdeman ‏@GerdOzone
Just realized that OSU isn't looking for tougher FB games because of playoff scheduling, they're doing it to have more "premium" games.

Although you lol'ed, I think Gerd put his finger on something: if tOSU wants to maintain its ticket revenue with the likelihood of fewer home games (inevitable if additional conference games are added), it had to increase pricing, and the "premium game" concept is a relatively less-painful way to do that.

 

[buckeyesin07]

Not to continue this as an economics discussion (yet that's what it has been since the OP), but changes in price do tend to shift the demand curve over time to some extent.

Link?

 

[Oh8ch]

Link?

http://smallbusiness.chron.com/can-make-demand-curve-shift-20107.html

Important Concepts
When analyzing the demand curve, keep in mind that a change in price is not one of the factors that will result in a shift of the demand curve. Any change in the price of a particular good represents a movement along the demand curve for that product. This occurs as a result of the change in quantity demanded as price changes are introduced. Since price and quantity demanded are inversely related, an increase in price would result in a decrease in quantity demanded, while a decrease in price would represent an increase in quantity demanded.

We need to clarify our terms. The demand curve is a representation of the relation between price and demand - so changes in either simply move you to new points on the curve. However, that price increases impact demand is pretty clear.

All that said, it will be interesting to see how this plays out. What scalpers sell tickets for represents the marginal price for the next ticket. That there are folks out there willing to buy a scarce ticket for $175 does not mean that 105,000 people are willing to pay that same price.

 

[MaxBuck]

Not to continue this as an economics discussion (yet that's what it has been since the OP), but changes in price do tend to shift the demand curve over time to some extent.

Link?

I have no link, but think about the demand for gasoline. Its demand curve has adjusted to accommodate itself to price increases over time as the driving public has become accustomed to the price rise. My point is that the demand curve (and the supply curve) are not static over time, but shift as a consequence of a variety of factors.

 

[MaxBuck]

What scalpers sell tickets for represents the marginal price for the next ticket. That there are folks out there willing to buy a scarce ticket for $175 does not mean that 105,000 people are willing to pay that same price.

True. But in most years in my memory, I think the stadium would have filled up even had ticket prices been $175 (inflation-adjusted) for the Michigan game. And the A-deck, 35-yard-line bounded seats will continue to be scalped for much higher prices IMO, most years.

I do think the university will need to start indexing ticket prices to location in the stadium, eventually.

 

[buckeyesin07]

I have no link, but think about the demand for gasoline. Its demand curve has adjusted to accommodate itself to price increases over time as the driving public has become accustomed to the price rise. My point is that the demand curve (and the supply curve) are not static over time, but shift as a consequence of a variety of factors.

Of course you have no link. Because what you're saying contravenes basic principles of economics. A change in price moves you along a demand curve, but doesn't shift the demand curve (which is what gbear originally said it does--although, to his credit, he agreed he misspoke and even he's not defending that position anymore).

 

[buckeyesin07]

http://smallbusiness.chron.com/can-make-demand-curve-shift-20107.html

. I ask for a link that support Max's argument that price can shift a demand curve over time, and you post an article that says the following:

When analyzing the demand curve, keep in mind that a change in price is not one of the factors that will result in a shift of the demand curve.

So, yeah, that basically supports exactly what I've been saying all along and flies directly in the face of what Max said. And, BTW--no clarification of terms is necessary--both gbear's original post (which, to his credit, he admits now is wrong) and Max's post spoke to a price change shifting the demand curve. That is flat out wrong and, as anyone who's spent an hour in an Econ 101 lecture can tell you, is much different than moving along a demand curve. The fact that some people around here (not pointing fingers) don't understand that a shift in the demand curve and a movement along a demand curve are not the same things doesn't make Max's claim that price can shift the demand curve any more true.

 

[JBaney45]

I have no link, but think about the demand for gasoline. Its demand curve has adjusted to accommodate itself to price increases over time as the driving public has become accustomed to the price rise. My point is that the demand curve (and the supply curve) are not static over time, but shift as a consequence of a variety of factors.

Yes and No.

Gasoline has a highly inelastic demand (people are willing to pay mostly regardless of the price due to the essential need to get from place to place and the lack of other adequate methods of transportation), so it is poor example in this case.

You are correct that the demand curve doesn't remain static over time, but that is a function of other things (changes in income, inflation etc). The price change isn't what is actually causing a shift in the demand curve though.

 

[MaxBuck]

. I ask for a link that support Max's argument that price can shift a demand curve over time, and you post an article that says the following:

So, yeah, that basically supports exactly what I've been saying all along and flies directly in the face of what Max said. And, BTW--no clarification of terms is necessary--both gbear's original post (which, to his credit, he admits now is wrong) and Max's post spoke to a price change shifting the demand curve. That is flat out wrong and, as anyone who's spent an hour in an Econ 101 lecture can tell you, is much different than moving along a demand curve. The fact that some people around here (not pointing fingers) don't understand that a shift in the demand curve and a movement along a demand curve are not the same things doesn't make Max's claim that price can shift the demand curve any more true.

Contrary to your simplistic and insulting comments, the demand curve does shift over time. Customer accustomization to changes in pricing does occur. For evidence, read the Monex explanation of gold scrap pricing changes in 2011 at 2012 GOLD MARKET OUTLOOK from Thomson Reuters GFMS.

You need to get a little more decaf, buddy. And recognize that you don't have all the answers just because you "took Econ 101." Some economics lessons aren't taught in the introductory course.

 

[JBaney45]

Contrary to your simplistic and insulting comments, the demand curve does shift over time. Customer accustomization to changes in pricing does occur. For evidence, read the Monex explanation of gold scrap pricing changes in 2011 at 2012 GOLD MARKET OUTLOOK from Thomson Reuters GFMS.

You need to get a little more decaf, buddy. And recognize that you don't have all the answers just because you "took Econ 101." Some economics lessons aren't taught in the introductory course.

Well this is about terminology here.

The price changes are still not shifting the demand curve in this instance. The anticipated increase in the return on gold as a result of inflation, market instability etc is causing the demand to increase. In the ticket example I would liken it to say..OSU having a game against a team and as the match up draws closer it becomes apparent that the game will have more at stake/be a better contest (think: OSU-Michigan 2006). The expected increase in return is what is causing the demand shift not the fact that the price shifts from x amount of dollars an ounce to y amount of dollars per ounce

 

[daddyphatsacs]

True. But in most years in my memory, I think the stadium would have filled up even had ticket prices been $175 (inflation-adjusted) for the Michigan game. And the A-deck, 35-yard-line bounded seats will continue to be scalped for much higher prices IMO, most years.

I do think the university will need to start indexing ticket prices to location in the stadium, eventually.

I'm not so sure. From my experience buying tickets leading up to a big game, the price always peaks about 2 weeks before the game....because most of the people who are traveling usually lock up a ticket in advance. The market always becomes flooded the week of the game when people catch wind of what the tickets are going for... People sit on high prices and become desperate as the game closes in. That's when you get your best deals. If the tickets are going for $175 across the board you are going to have more people waiting out C deck tickets to see if they can get them under face. A deck is a different story.....but as a collective whole, I think this drives demand down substantially.

 

[tsteele316]

I'm not so sure. From my experience buying tickets leading up to a big game, the price always peaks about 2 weeks before the game....because most of the people who are traveling usually lock up a ticket in advance. The market always becomes flooded the week of the game when people catch wind of what the tickets are going for... People sit on high prices and become desperate as the game closes in. That's when you get your best deals. If the tickets are going for $175 across the board you are going to have more people waiting out C deck tickets to see if they can get them under face. A deck is a different story.....but as a collective whole, I think this drives demand down substantially.

this is secondary market analysis. the demand from osu's side, in terms of selling their 105,000+ tickets isn't going to change one bit with the price increase.

 

[BuckBackHome]

As long as the proceeds go to buy out a certain athletic director's contract.

 

[daddyphatsacs]

this is secondary market analysis. the demand from osu's side, in terms of selling their 105,000+ tickets isn't going to change one bit with the price increase.

I truly think that some of the casual game attenders will start to pass on tickets at such a high price. Especially those who get a pair of alumni tickets to Wisconsin (or a comparable game) for $340. Michigan will always sell out, but some of the games under that may not be as sure of a bet if they don't price the seats based on section or something to that effect.