Question
Are some Rugby World Cup games more expensive? Adult ticket prices for Rugby World Cup games to be played in England in 2015 were as
Are some Rugby World Cup games more expensive?
Adult ticket prices for Rugby World Cup games to be played in England in 2015 were as follows.
MATCH
TEAM 1
TEAM 2
DATE
CAT A
CAT B
CAT C
CAT D
Pool A1
England
Fiji
18 Sept 2015
315
215
160
75
Pool D1
France
Italy
19 Sept 2015
250
175
125
50
Pool B2
Scotland
US
27 Sept 2015
85
65
35
20
Pool A3
Wales
Fiji
01 Oct 2015
175
125
85
50
Pool C3
New Zealand
Georgia
02 Oct 2015
150
115
75
50
Pool A1
England
Australia
03 Oct 2015
315
215
160
75
QF 11
Winner Pool B
Runner-Up Pool A
17 Oct 2015
250
215
150
95
QF 41
Winner Pool A
Runner-Up Pool B
18 Oct 2015
250
215
150
95
SF 11
Winner QF 1
Winner QF 2
24 Oct 2015
515
315
215
125
SF 21
Winner QF 3
Winner QF 4
25 Oct 2015
515
315
215
125
BF4
Runner-Up SF 1
Runner-Up SF 2
30 Oct 2015
175
125
85
50
Final1
Winner SF 1
Winner SF 2
31 Oct 2015
715
515
315
150
1 Match played at Twickenham Stadium, capacity 81 605
2 Match played at Elland Road, capacity 37 914
3 Match played at Millennium Stadium, capacity 74 154
4 Match played at Olympic Stadium, capacity 54 000
Source: Rugby World Cup. 'Fixtures and pricing'. https://tickets.rugbyworldcup.com/site/assets/FixtureList.pdf.
The table above presents a sample of ticket prices for different games that were played as part of the Rugby World Cup in England in 2015. At the time of setting these prices, the organisers did not know which team would win the pool matches; nor did they know which teams would make it to the finals. The four venues are in various cities in England, and the seating capacity varies from 37 914 (at Elland Road) to 81 605 (at Twickenham Stadium). There are four categories of adult tickets; in descending order from most expensive to cheapest, they are category A, category B, category C and category D.
Weblink
Go to the Australian Bureau of Statistics website at http://www.abs.gov.au/. Select 'Statistics', then click 'Price Indexes & Inflation' (under the heading 'Economy') to access the latest price changes for products. Think about the possible changes in demand or supply that may have caused these price changes, while considering the price elasticity of the relevant products.
Using the information provided, answer the following questions:
(a)Would you expect price elasticity of demand for tickets to be different for each game? Why or why not?
(b)Some games are being played at smaller venues, (e.g. Scotland versus US at Elland Road). Since the venue is smaller and there are fewer tickets available, explain why the tickets should be more expensive at the smaller venues. Also explain why they are actually cheaper.
(c)Why is there such a difference in price between, say, the England versus Fiji game (315 for a category A ticket), the Wales versus Fiji game
(175 for a category A ticket) and the final game (715 for a category A ticket)? Why have the organisers not retained identical conditions for each game and instead adjusted the prices? Explain your answer.
(d)What do the price adjustments mean for total revenue?
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Land Economics Research
Authors: Joseph Ackerman, Marion Clawson, Marshall Harris
1st Edition
1317340426, 9781317340423
