Question

Consider Cowboys Stadium, a large football stadium that can seat approximately 80,000 people (and hold over 100,000 people), located in Arlington, Texas.

If the Super Bowl, the game that determines pro football's champion team for the year, is played in Cowboys Stadium, the quantity of parking spots demanded will far exceed capacity. On a typical game day in the regular season, the quantity of parking spots demanded will only slightly exceed capacity. For smaller events, less than half of the parking spots are typically filled. Assume the marginal cost of providing another parking spot, once the parking lot has already been built, is $0 up to capacity.

In the following table, match each event to the most likely pricing strategy per parking spot.

Pricing Strategy	Regular Season       Game	Super Bowl	Small Event
$180 per spot	?                                       ?		?
$4 per spot	?	?	?
$60 per spot	?	?	?

Answer 1

As per the information for smaller events less than half of the parking spots are filled.so demand is lower than supply.Therefore price should be lowest,In this case $4 per spot will be appropriate.

For regular season the demand for parking spots are almost equal to the supply,hence it should be the market clearing price of $60 per spot as it is the second highest price.

Now lastly for the super bowl season as demands are much higher than supply,price should be highest,$180 per spot.