Price Elasticity of Demand in the Secondary Market

Abstract

This article investigates own-price elasticity of demand in the secondary (resale) market for National Football League (NFL) tickets. The sample is comprised of actual market transactions (prices and quantities exchanged) and an instrumental variable estimation method is employed. Price elasticity is estimated for the stadium as a whole as well as separately for the upper and lower venue levels and for four primary seat location categories within the venue. The results indicate that, counter to most estimates of price elasticity in the primary market, the secondary market for NFL tickets is characterized by elastic demand and that elasticity varies across different levels of seat quality.