Find the optimal prices for tickets and the sellers profit

Reference no: EM13335836

A hockey club, which is a monopolist in a region, sells tickets for hockey games and does not incur costs. There are two types of areas in the hockey arena A and B with different qualities of view and 5000 seats in area A and 10000 seats in area B. Also, there are three types of people, who like to watch games: club fans (F), hockey lovers (H), and others (O). Each group consists of 5000 people. Their utilities from watching a game are:

- A B

F 150 105

H 100 75

O 50 35

(a) Find the optimal prices for tickets and the seller's profit in the case of the perfect discrimination.From now and to the rest of the problem, suppose that the seller cannot identify the buyer's type at the moment of sale.

(b) Suppose that the seller wants to serve only club fans. Find the optimal prices, the number of tickets sold in each area and the seller's profit.

(c) Suppose that the seller wants to serve only club fans and hockey lovers. Find the optimal prices, the number of tickets sold in each area and the seller's profit.

(d) Find the optimal prices, the number of tickets sold in each area and the seller's pro?t given that the seller wants to serve all consumers.

(e) Given your answers to (b) and(d), and the optimal prices and the seller's profit and compare them to those in (a).

Reference no: EM13335836

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