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  • Thumbnail for Reacting to a potential rival's substantial price decrease : the case of the ultimate fighting championship
    Reacting to a potential rival's substantial price decrease : the case of the ultimate fighting championship by Quinn, Brendan Michael

    This thesis measures the degree of substitutability in consumption between televised mixed martial arts competition presented by the Ultimate Fighting Championship (UFC) and professional wrestling presented by World Wrestling Entertainment (WWE) in order to estimate the potential impact on UFC’s revenues after WWE’s announcement of a change in its pay-per-view model that dramatically decreases prices. Using a variety of control variables, the seemingly unrelated regression model finds significant substitutability in consumption between the products offered by each company as well as decreasing revenues for UFC as time goes on. This thesis then analyzes WWE’s decision to offer a far less expensive digital subscription service and UFC’s decision to continue using the traditional pay-per-view model.