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Here at OptionIt we are committed to offering you a product that meets the varrying demands of your hectic life. Options do just that, and we have the evidence to prove it.
A few years ago, three professors from Indiana University and the University of North Carolina at Chapel Hill came together to produce an empirical study on how options apply to the sports market. This study resulted in some very important universal concepts that we would love to share with you.
Fill out the information on the right hand side of this page and download your copy of this whitepaper today. Read the abstract below to get a taste of the amazing voyage your are about to set out on.
We introduce the concept of consumer options and empirically validate it in the context of event ticket pricing. We demonstrate that consumer options can protect consumers from the downside related to uncertain outcomes, and enhance seller profits by enabling superior market segmentation and increasing consumer willingness to pay. We examine ticket pricing in sports markets where there is uncertainty about the teams that will play in a final event (e.g., the NCAA Final Four basketball tournament). Fans who want to attend the game after knowing which teams will play are often disappointed because tickets typically sell out in advance. We propose that a fan can buy an option on a ticket before this uncertainty is resolved. Later she can decide about exercising the option. We present a simple analytical model of consumer options in this setting. We then empirically demonstrate that profits under options can exceed those from (a) advance selling, and (b) pricing after uncertainty is resolved. Our analysis and findings lay a foundation for future work on consumer options in marketing.