This article is talking about the decision made by the New York Jets to lower their ticket prices for the 2013 NFL season.Â The cut in ticket prices came after a disappointing third place finish in the AFC East, behind the Patriots and Dolphins, where they only won six games out of their sixteen opportunities last season.Â For the New York Jets in 2013 most ticket prices at the four year old MetLife Stadium will stay the same as the year before.Â There will be no rise in ticket prices for the 2013 season, but there will be a fall in ticket prices in multiple seating sections. The prices of around 3,000 seats located on the upper level will fall to $50 per game. With the drop in prices of upper level tickets there are now 9,000 seats available at the price of $50 per seat. The upper level isnât the only level where fans of the New York Jets will see more affordable tickets. The team has also cut prices on tickets at the club level for the upcoming season. The amount of the price drop is not listed in the article but the high price of club seats at MetLife Stadium is now $700 per game. In an attempt to increase their amount of season ticket-holders, the Jets are offering the opportunity for season ticket-holders to enter a lottery for tickets to the 2014 Super Bowl that will be played at MetLife Stadium.
The first economic topic covered in class that comes to mind when reading this article is the Demand for a particular product. The market for tickets to New York Jetâs games during the 2012 NFL season was at an equilibrium price and quantity where all of the tickets supplied were sold. However, after a down season in 2012 the demand for tickets to New York Jetâs games decreased. There is no change in the supply curve but there is a shift in the demand curve to the left. Because of the demand shifting to the left, a new market equilibrium for tickets to New York Jetâs games is found where both the equilibrium price and quantity decrease. This is a problem for the New York Jetâs ownership because their goal is to sell out every home game.Â In order to make up for the loss in tickets sold due to the decrease in demand, the New York Jets are forced to lower their prices even more if they want to sell all of their tickets. This is an example of the Law of Demand. The Law of Demand states that when all else remains constant, as the price of a good decreases, the quantity demanded increase. In this case, the New York Jets need to increase the demand for their tickets. By lowering the price of their tickets the quantity demanded will increase which leads to the team selling out their stadium on game day even if it means they arenât at market equilibrium.
Given my understanding of economics, I came to the conclusion that the New York Jets made a bad decision in decreasing their prices of tickets when it comes to their economic efficiency. The New York Jets decreased their prices in order to sell out their stadium even if it meant not selling at the market equilibrium. In order for the New York Jets to have their ticket sales be as profitable as possible they would need to sell their tickets at the equilibrium price even if it meant not selling our MetLife Stadium on game days. Based solely on ticket sales and prices for the 2013 season the New York Jets will not be operating at maximum efficiency. In my mind, there are only a couple ways the New York Jets could have made this decision. One way the New York Jets could have made this decision would be if they believed they could make more money off of added concession and team store purchases from the extra fans in the stadium each game than the revenue gained from game tickets being sold at the market equilibrium price. The only other way I can see the Jets making this decision would be if they valued each fan in the stadium at a certain dollar amount and that dollar amount was greater than the marginal revenue gained charging higher prices. Overall, I believe the New York Jets made a bad decision when it comes to them lowering their ticket prices for the 2013 NFL season.
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