Price of Tickets

The Athletic Department at The Ohio State University has it's own monopoly in the market for athletic tickets. They are the sole local provider for collegiate athletic tickets in this area, they produce and control the prices and amount of tickets. They already produce millions of dollars from all of the sporting events held, but they arent reaching the maximum revenue they could recieve for tickets for certain events.



This is shown through ticket scalpeing, where tickets are bought for double amount of what theer face value is and sometimes even tripple. An example of this would be the Ohio State vs Michigan football game where tickets are sold at crazy prices reaching 2,000 plus for tickets in the upper deck. A single game ticket is usually sold for $60 face value and $30 for students, this is well below what they end up being scalped for.



So what should the athletic department do to increase their total revenue?

They could use their power and raise the tickets for all the games held.....

They could raise the price of tickets depending on the game.......

They could make all tickets at equal prices eleminating the difference between student and public tickets......



All of these things could work but there would be problems in figureing out the exact equallibrium for the price of ticekets.
If you raise the price of tickets for every game people would be angry but in the end will end up buying ticket.
You never know how good each team is going to be year by year so it would be hard to set a price for each game.
If they made tickets equal price for everyone at $60 students would have a problem, because they are already paying for tuition they might feel as if it should be a part of what they are paying or dicounted because they are students.

In the end the athletic depatment can use their power to receive more total revenue the events they control.