Question

In: Economics

Does a regulatory institution need to be in place to control sports leagues (think about issues...

  • Does a regulatory institution need to be in place to control sports leagues (think about issues such as "deflate gate," concussions, for example)?
  • Is it fair to charge different sports consumers different prices to see the same game/match? Think about segmented markets, two-part pricing, or quantity discounts, for example. Who benefits? Who loses?

Solutions

Expert Solution

in my opinion a regulatory institution need not be placed to control sports league because it is not necessary to control the sports league as it is related to the hobby and interest of the consumer it does not come under the category of necessity or luxurious all the basic goods of the commodity and therefore the regulations do not come under the category of necessity or luxurious all the basic goods of the commodity and therefore the regulations on the sports league degrade the level of.

Yes, it is fair to charge different sports consumers different prices to see the game or match because as it is already stated that it is a matter of hobby and interest of the consumer and consumer purchases the ticket as per their interest and as per their comfort so it is not a price control or price support type of thing which is required or related with the necessary goods it is very important to increase the revenue of the sponsors for further improvement of the sports competition the price discrimination policies in this sports Industry is important.

Segmented marketing or market is not important to value the sports industry but it is important to deliver a good rate of return for the investment.

two-part pricing is another example of price discrimination and it is important for the business point of you.

Quantity discount is also important to increase the sports instrument industry and here the benefit goes to both players and the sports institution.

In this industry, the loss is borne by small traders or small production houses.


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