Problem
Explore the use of the sports demand model and its implications for team owners' motivation to maximize profits through gate attendance. The demand model suggests that by reducing ticket prices, a team owner can increase ticket sales revenue, but this approach also has a significant drawback. To boost total revenue, the ticket demand function must be shifted to the right. In this discussion, I would like you to consider the following two questions:
• What are the limitations of the strategy of reducing ticket prices as a means of maximizing the ticket sales revenue in the context of gate attendance? Explain why this strategy may not always be effective.
• What steps can a team owner take to effectively shift the ticket demand function to the right, in order to maximize total revenue? Provide specific examples or strategies to support your answer.