Pricing Theater Seats: The Value of Price Commitment and Monotone Discounting
研究非营利艺术组织在系列演出中，通过价格承诺（特别是单调递减折扣）提升门票销售和收入，发现可带来每场2.1%至6.7%的收入增长。
We examine the value of price commitment in a non‐profit organization using individual‐level purchases over a series of concert performances. To decide on a pricing policy, the performing arts organization must be able to accurately measure when each ticket will be sold and what type of audience will purchase the tickets for each performance. We use a competing hazards framework to model the timing of ticket purchases when customer segments differ in their valuations and arrival times. We show that the customer purchase likelihoods change based on the prices observed earlier in the season. Hence, price commitment can aid in improving sales, revenues, and customer visits. In particular, we show that price commitment to a decreasing monotone discount policy can improve the revenues in the range 2.1%–6.7% per concert.