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1 – 10 of over 56000Many sports properties have had great success entering into sponsorship deals with secondary ticketing companies. However, additional benefits are possible with a reshaping of the…
Abstract
Many sports properties have had great success entering into sponsorship deals with secondary ticketing companies. However, additional benefits are possible with a reshaping of the structure of primary and secondary ticketing markets. Specifically, fully integrating both primary and secondary markets can help sports properties reduce ticket fraud, monitor fan behaviour, significantly increase revenue in both markets and improve the overall fan experience. This paper details each of these benefits and provides suggestions for programme development and administration.
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Dale Rogers, Haozhe Chen and Zac Rogers
The circular economy is a system that aims to conserve resources at every level for as long as possible with a minimization of waste. The core concept of the circular economy is…
Abstract
The circular economy is a system that aims to conserve resources at every level for as long as possible with a minimization of waste. The core concept of the circular economy is to improve resource efficiency and prevent valuable materials from leaking out of the system. Better use of increasingly scarce resources can provide both economic and environmental benefits. When excess inventory, returned products, and end-of-life products are disposed of improperly, unnecessary waste is created, often with a detrimental impact to the environment. An effective system must exist to facilitate the proper handling of these products, and secondary markets are a crucial component in this system. In this chapter, we discuss the secondary markets’ role as an important mechanism for achieving a circular economy.
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SHANTARAM P. HEGDE and SANJAY B. VARSHNEY
We argue that uninformed subscribers to an initial public offering (IPO) of common stocks are exposed to greater ex ante risk of trading against informed traders in the secondary…
Abstract
We argue that uninformed subscribers to an initial public offering (IPO) of common stocks are exposed to greater ex ante risk of trading against informed traders in the secondary market because the advent of public trading conveys hitherto private information and thereby mitigates adverse selection. The going‐public firm underprices the new issue to compensate uninformed subscribers for this added secondary market adverse selection risk. We test this market liquidity‐based explanation by investigating the ex‐post consequences of ownership structure choice on the initial pricing and the secondary market liquidity of a sample of initial public offerings on the New York Stock Exchange (NYSE). Consistent with our argument, we find that initial underpricing varies directly with the ex post trading costs in the secondary market. Further, initial underpricing is related positively to the concentration of institutional shareholdings and negatively to the proportional equity ownership retained by the founding shareholders. Finally, the secondary market illiquidity of new issues is positively related to institutional ownership concentration and negatively to ownership retention and underwriter reputation. Thus, the evidence based on our NYSE sample supports the view that the entrepreneurs' choice of ownership structure affects both the initial pricing and the subsequent market liquidity of new issues.
Dale S. Rogers, Zachary S. Rogers and Ronald Lembke
Secondary markets provide a place for unwanted items to be bought and sold, which diverts them from landfills, reducing the products' ecological impact and creating economic…
Abstract
Purpose
Secondary markets provide a place for unwanted items to be bought and sold, which diverts them from landfills, reducing the products' ecological impact and creating economic value. The purpose of this paper is study the secondary markets to understand the size of this important portion of the US economy.
Design/methodology/approach
The data were collected from financial reports, news articles, and interviews with subject experts. From all of these sources, the scope and size of secondary markets can be estimated.
Findings
Secondary markets are effective in diverting a large number of products from landfills, creating numerous jobs, resulting in substantial economic value in the process. Although not reflected in current government metrics, a conservative estimate is that the secondary market represents 2.28 percent of the 2008 US gross domestic product.
Research limitations/implications
Several of the secondary markets have many small players, with no strong trade associations or other authorities to estimate their size. The paper's estimates based on known sources are very conservative, perhaps underestimating the size of these sectors.
Practical implications
As society increasingly pays attention to the ecological impact of its products, secondary markets will play an important role in supply chains. Understanding the magnitude, structure and reach of these markets can help firms develop better product stewardship and lifecycle management.
Social implications
Individuals will not directly change their behavior from this research, but the findings should help companies behave differently, which in the end will offer products with lower ecological impact.
Originality/value
Secondary markets are an integral part of the US economy, and have not been adequately studied.
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Yohan Lee, Alan Morse, Moonsup Hyun, Stephen L. Shapiro and Joris Drayer
Pricing studies have largely focused on sellers' pricing strategies and price determinants. To expand earlier work on sellers' pricing decisions, this study considers time as a…
Abstract
Purpose
Pricing studies have largely focused on sellers' pricing strategies and price determinants. To expand earlier work on sellers' pricing decisions, this study considers time as a major factor driving sellers' ticket prices in the secondary market. Specifically, because most secondary market transactions occur in the last moments before a game, this study considers how resellers adjust ticket prices within a few days prior to a game day including an actual game day.
Design/methodology/approach
To examine the impact of time on secondary market ticket prices for Major League Baseball (MLB), ticket prices were collected from StubHub (one of the largest secondary ticket markets) four times per game: from 3 days to 1 day prior to a game day and on the actual game day. Additionally, 10 control variables were obtained from previous research on price determinants (N = 19,155). A multiple regression model was created based on the extant literature regarding secondary market ticket prices.
Findings
Results indicate the number of days before a game negatively influenced ticket prices: resellers decreased ticket prices consistently during the last few days prior to a game's first inning. Specifically, secondary market ticket prices decreased relatively dramatically on an actual game day. Time had no significant effects on ticket prices 2 days prior to a game day. In addition to the role of time, league affiliation and the number of all-star players were identified as key price determinants in the secondary market. Moreover, changes in weather forecasts and the home team starting pitcher's ERA played significant roles in price changes.
Research limitations/implications
Despite containing a relatively high number of data observations compared with prior pricing studies, this study's findings were limited to certain teams. Additionally, as only MLB secondary market ticket pricing was considered, different outcomes and implications may apply in other major sport ticket markets (e.g. NBA, NFL, NHL and MLS) featuring distinct league structures, policies and demand.
Practical implications
This study offers practical guidance for sellers' pricing decisions. Most secondary ticket market sellers lowered their ticket prices relatively dramatically on an actual game day. Reducing ticket prices prior to a game day can lead to greater chances to avoid unsold tickets that compromise revenue management. This study's results also afford professional sport organizations and secondary ticket market consumers a clearer understanding of the factors resellers consider when setting ticket prices.
Originality/value
Although previous studies have uncovered essential elements influencing ticket prices and consumer demand in the secondary ticket market, little work has examined how time affects sellers' pricing decisions within a few days prior to a game day. Little is known about the elements that significantly influence sellers’ decisions to adjust (i.e. increase or decrease) ticket prices in the secondary market as well. This topic deserves ongoing attention, as new outcomes can supplement previous studies' findings due to changing market environments.
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Feng Yang, Xiang Wu and Feifei Shan
This paper aims to study the impact of manufacturer’s upgrading strategy of durable products on the retailer’s decision on trade-in program and her decision on the secondary market…
Abstract
Purpose
This paper aims to study the impact of manufacturer’s upgrading strategy of durable products on the retailer’s decision on trade-in program and her decision on the secondary market.
Design/methodology/approach
This paper develops a channel that consists of a manufacturer and a retailer, where the manufacturer releases an upgraded product, and the retailer introduces a trade-in program for consumers, simultaneously, decides whether to enter the secondary market. These approaches are modeled through Stackelberg game.
Findings
This paper reveals that the optimal conditions for manufacturer to release upgraded products and retailer to resell used products in the secondary market, and it reveals that under what conditions it is profitable for retailer to enter the secondary market under product upgrade levels.
Practical implications
If the manufacturer’s upgrade level is low, it is profitable for the retailer to enter the secondary market. However, if the manufacturer’s upgrade level is high, it is unprofitable for the retailer to enter the secondary market.
Originality/value
In this paper, the active secondary market, upgrading of new products, consumer market segmentation and especially, the upgrade degree of new products as a function of consumer demand are considered simultaneously.
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Kelcie Slaton and Sanjukta Pookulangara
The purpose of this study was to investigate the elements of the triadic framework (e.g. consumer motives, activities, resources and capabilities) and their influence on consumer…
Abstract
Purpose
The purpose of this study was to investigate the elements of the triadic framework (e.g. consumer motives, activities, resources and capabilities) and their influence on consumer attitudes and the theory of reasoned action (TRA) elements of subjective norms and eventual purchase intention of secondary sneakers.
Design/methodology/approach
The framework draws from two models, the triadic framework for collaborative consumption and the TRA. Data was collected using an online survey, which consisted of demographic questions and reliable scales. The hypothesized relationships were tested through structural equation modeling.
Findings
The findings indicate that reducing risks and the customer activity of providing information was significant in influencing consumers' attitudes. However, the customer motives of economic and environmental as well as technical skills were not significant in influencing attitudes.
Practical implications
This study attempts to inform secondary and full-priced retailers offering used products strategies to provide the best experience to millennial and generation Z consumers to ensure they can attract and retain them.
Originality/value
It can be stated with a high degree of certainty that sneaker resale remains one of the most permanent trends in the market today with sneaker resale is significantly outperforming the broader ecommerce ecosystem suggesting more research into the motivations of secondary sneaker consumption.
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This study aims to explore the failures of Tunisian secondary corporate bond market liquidity to understand the determinants of corporate bond market liquidity at large.
Abstract
Purpose
This study aims to explore the failures of Tunisian secondary corporate bond market liquidity to understand the determinants of corporate bond market liquidity at large.
Design/methodology/approach
We adopted a qualitative approach to studying the Tunisian Stock Exchange. Dealers’ perceptions were collected through semi-structured face-to-face interviews; the data was recorded, transcribed and thematically analysed.
Findings
Secondary corporate bond market failures are due, in part, to microstructural choices – especially the use of an over-the-counter market as a trading venue. The absence of a corporate bond yield curve, a narrow investor base, market participants’ lack of financial education and authorities’ attitudes are equally responsible.
Research limitations/implications
This study is useful to researchers, policymakers and practitioners, as it identifies microstructural and other factors affecting the Tunisian secondary corporate bond market. We interviewed only Tunisian dealers while ignoring other categories of market participants. Furthermore, a focus group discussion could have improved our understanding of the determinants of the Tunisian secondary corporate bond market.
Originality/value
This paper aimed to qualitatively discuss several issues related to the Tunisian secondary corporate bond market. To date, little academic research has addressed this topic in the illiquid and non-transparent corporate bond markets.
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The purpose of this paper is to investigate investor behavior in the market of peer-to-peer lending, which is an alternative form of finance, from the liquidity perspective.
Abstract
Purpose
The purpose of this paper is to investigate investor behavior in the market of peer-to-peer lending, which is an alternative form of finance, from the liquidity perspective.
Design/methodology/approach
Liquidity metrics and regressions are used to identify the trend of the market and the variables that significantly impact the successful resale, selling time and discount rate in the secondary market. Structural break analysis is used to examine the impact of COVID on the market.
Findings
There is a high demand for performing loans that are sold quickly; however, the discount rate is also high, which reflects the price of liquidity. Based on the results obtained from regressions, the main factors that impact the investors’ decisions are discount rate, borrower’s country, principal and the month passed after loan origination. Furthermore, it can be concluded that the pandemic has led to a structural break in March 2020, and investors have started to liquidate their claims.
Practical implications
This paper’s purpose is to add to the research that examines the secondary market in social lending. It also contributes to the understanding of an investor’s decision and behavior, which are key parts of the segment’s long-term sustainability from the demand perspective. The comprehensive understanding of a lender’s behavior is also essential for supervisory authorities and other participants of the financial market.
Originality/value
Previous studies mostly focused on credit risk aspects, whereas this paper contributes to the modest research of liquidity features. The added value of this paper is further supported by the use of a large European secondary market data set, including more than 5 million transactions, covering an 18-month horizon. Moreover, the market’s sensitivity is analyzed in the case of an external shock. In the beginning of 2020, the COVID outbreak caused an economic shutdown in many European countries. The paper examines how these uncertain economic conditions impact the secondary market.
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Ali B. Mondt, Yohan Lee, Stephen L. Shapiro and Alan Morse
This study aims to examine how the partnership between StubHub and MLB affected consumers' perceptions of StubHub. The case of StubHub and MLB was selected based on their…
Abstract
Purpose
This study aims to examine how the partnership between StubHub and MLB affected consumers' perceptions of StubHub. The case of StubHub and MLB was selected based on their partnership history and the reputation of StubHub.
Design/methodology/approach
A Qualtrics survey panel was used to collect the survey data. Structural equation modeling was used to analyze the relationships between sponsor congruence, brand equity and purchase intention.
Findings
Sponsor congruence plays a significant role in consumers' perceived quality of StubHub. Additionally, brand equity significantly influenced purchase intention. More specifically, brand loyalty was the strongest indicator of intent to purchase tickets from StubHub. Brand loyalty and perceived quality indirectly affected the relationship between sponsor congruence and consumers' purchase intentions of StubHub.
Originality/value
Sponsor congruence between secondary ticket markets and sport leagues can provide a competitive advantage, helping create revenue generation and leverage for partnerships. Perceived quality can help facilitate this relationship and increase revenue generation.
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