July 14, 2012
Buying Tickets: When Is The Best Time?
We’ve all been there. You’ve got a weekend trip coming up, just far enough away that you would like to fly, but when you check the rates – the prices make your eyes pop. And then you see a much cheaper rate for a city on the other side of the country. What’s going on?
With help from the National Science Foundation, economist Andrew Sweeting at Duke University is researching markets for perishable goods, which includes tickets because they have to be used by a certain date. Sweeting wants to gain a broader understanding of the general economic forces at play in perishable goods markets. For example, why do sports tickets drop in price the closer you get to a sporting event, while airline tickets tend to go up closer to the date of departure?