Consumer forwards: Concept and empirical analysis of a sports ticket market

Preethika Sainam, Sridhar Balasubramanian, Barry L. Bayus

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

Tickets to sports events like the NCAA basketball tournament are currently sold well in advance of the games. Fans who wait to purchase a ticket after knowing which teams will play are often disappointed because the tickets are sold out by then. Recently, some firms have offered fans the opportunity to purchase forwards on tickets before this uncertainty is resolved. Each purchased forward is linked to a team - if that team makes it, the fan must buy the ticket; otherwise, the forward expires. Such forwards protect fans from uncertainty and provide the firm with assured revenues. This paper presents an analysis of data from a company that offers forwards in a sports ticket market. Multiple models that account for fan heterogeneity are presented to capture forward purchase and resale behaviors. The analysis and findings shed light on how fans mitigate risk in this volatile setting and lay a foundation for future work on consumer forwards.

Original languageEnglish (US)
Pages (from-to)103-121
Number of pages19
JournalInternational Journal of Sport Finance
Volume10
Issue number2
StatePublished - May 1 2015
Externally publishedYes

Keywords

  • Consumer forward
  • Event tickets
  • Final four tickets
  • Forward pricing
  • Pricing under uncertainty

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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