Season ticket holders often purchase their tickets before a season begins.There is often a discount associated with season tickets.Why?
A) Buying season tickets entails risk, which consumers are willing to bear if they are compensated for doing so.
B) Buying season tickets is a way of guaranteeing a supply of tickets for the secondary market.
C) Selling season tickets entails greater transactions costs which team owners hope to avoid.
D) Sports teams are local monopolies.

Question

Quizplus · Accepted Answer

Buying season tickets involves a risk for the consumer, such as the risk that the team will perform poorly or that some games will not be attended. The discount serves as compensation for taking on this risk.

Season Ticket Holders Often Purchase Their Tickets Before a Season