Problem
In the 2003 Major League Baseball season, the New York Mets began charging fans up to twice as much to watch games involving the cross-town Yankees or other popular teams than less popular or less competitive teams. Other professional teams have adopted the same pricing strategy. While the Yankees increased the prices of popular games, they dropped the price of upper-deck seats for some weekday games against weak opponents.
a. A Mets-Yankees game is more popular than a Mets-Marlins game. Is the Mets' policy of charging fans more to see the Yankees than the Marlins a form of price discrimination? If so, which type?
b. What is the effect on the quantity of tickets demanded for the Yankees-Mets games if the Mets drop the price of the cheap seats for unpopular games? How do the Mets take this effect into account when setting ticket prices? In answering the question, assume that the Mets choose two ticket prices-one for the Mets-Yankees game and the other for the Mets-Marlins game-to maximize the sum of revenues of the two games.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.