Some Baseball Parks Have a "7th Inning Stretch" Where Beer

question 40

Essay

Some baseball parks have a "7th Inning Stretch" where beer, hotdogs and other food items are offered for sale at a lower price. What economic concept is being used by the baseball park to justify this practice? If it is successful at selling more food and drink with this practice why don't they lower prices at the beginning of the game?

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Definitions:

Fair Value

The amount one would expect to receive from selling an asset or the cost to transfer a liability in a smooth transaction among market players on the date of valuation.

Non-Controlling Interest (NCI)

The portion of equity ownership in a subsidiary not attributable to the parent company, reflecting the minority shareholders' share of the subsidiary's net assets and profits.

Statement Of Financial Position

A financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time, also known as a balance sheet.

IFRS 3

An International Financial Reporting Standard that deals with the accounting treatment for all business combinations.