21 Jun Price / Volume and the Atlanta Falcons Concessions
$14 beer and $7 hot dogs at sports stadiums. Why is that the right price? Or strategy? What about tailgating as a substitute? Or staying home? How do concessions impact the overall game experience? Airports and movie theaters are two other examples of captive market pricing. Here’s a great little podcast from the folks at Planet Money that is an excellent case analysis for the many facets of price/volume trade-offs and other considerations in pricing. Could easily be used for classroom discussion.