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Optimal ticket pricing by seat location in the movie industry
活動起日:2026-06-02 
發佈日期:2026-06-02 
瀏覽數:28  2026-06-04 更新

Optimal ticket pricing by seat location in the movie industry

 

Source: Journal of Business Research (2026), 210, 116177.

 

Authors: Ling-Chieh Kung (孔令傑), Yu-Hung Chen* (陳聿宏), Chieh-Hsiang Hu(胡捷翔), Yu-Ping Chen (陳瑀屏)

 

URL: https://www.sciencedirect.com/science/article/pii/S0148296326002122

 

Abstract: This study develops an analytical model to investigate optimal pricing strategies for movie theaters offering seats with heterogeneous viewing experiences. While price discrimination based on seat location is common for other performance goods, uniform pricing remains prevalent in the movie industry. By incorporating essential features of the movie industry, we determine that uniform pricing is optimal when the supply of prime-location seats is limited and the likelihood of consumers changing their minds before purchasing tickets is high. Specifically, uniform pricing creates perceived scarcity, which intensifies competition for preferred seats and encourages consumers to buy earlier. These advance purchases mitigate potential losses from consumer attrition and may offset the forgone revenue from not extracting consumer surplus. Lastly, this study examines the optimal seating design and suggests that theaters should offer only a moderate number of premium seats, even when additional capacity can be provided at no cost.