Ticket Pricing Case Study

The regular attendees at both events will be frustrated at NASCAR’s decision to cut Darlington’s races from two to one. The reason that the regular attendees will be frustrated and unhappy with this decision is because these fans will only have the option to see a race held once a year at the Darlington Raceway. There will be a higher demand for purchasing tickets with seating being scarce due to high potential of sales at the single race. This will now lead into a problem with setting ticket pricing at Darlington Raceway. The owners and fans will see this a loss because there will be less revenue being generated for the owners, while a scarcity in the number of races held. The regular attendees will be even more frustrated because if they want to attend more than one race a year, they will not have the option to attend more than one race at Darlington Raceway. These fans will now have to travel to another raceway or suffer the loss by having the ability to only attend one race.

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How might NASCAR’s decision affect ticket pricing for the one remaining Darlington race? Explain your answer, referring to the economic and financial principles discussed in this chapter. Since NASCAR reduced the number of races held at Darlington Raceway, it will definitely impact ticket prices. It is clear that there will not be a reduction in seats, but rather Darlington may find a way to increase seating options available. Ticket sales are the oldest and most common income generator for events. The ticket pricing will be increased due to the reduction of races. A higher demand for seating will be implemented that will directly affect a ticket price. NASCAR has created a scarcity by eliminating one Sprint Cup race. On the other hand, if NASCAR were to increase the number of races at Darlington, ticket pricing may decline slightly. Altogether, ticket prices will increase due to one Sprint Cup a