Final answer:
The characteristic that best defines why you must sell a sporting event ticket before the event is perishability. Price elasticity of demand impacts the pricing strategy for tickets to maximize revenue, with different approaches for whether demand is elastic, inelastic, or has unitary elasticity. Famous bands may experience inelastic demand, offering them the ability to set higher prices, though they often choose not to maximize fan satisfaction.
Step-by-step explanation:
Among perishability, price, intangibility, and difficulty, the characteristic that best defines why you must sell a sporting event ticket before the event is perishability. This is because the value of a ticket to a particular event expires after the event has occurred; it cannot be sold afterward. Considering the price elasticity of demand is crucial when aiming to maximize revenue from ticket sales. If the demand for tickets is elastic, lowering the price can increase the total revenue by attracting more sales. Conversely, if demand is inelastic, raising prices might still increase total revenue since the drop in ticket sales will likely be smaller than the increase in price per ticket. For events with an anticipated demand that has a unitary elasticity, neither increasing nor decreasing the price significantly affects the total revenue, as the change in quantity sold will proportionally offset the price change.
It's important to note that sometimes famous bands with devoted fanbases might encounter inelastic demand. These bands can keep increasing ticket prices since their fans are willing to pay more up to the point where the arena is full. Despite being able to impose higher prices for potential higher revenue, some bands choose to price their tickets lower than the absolute maximum to maintain fan satisfaction, with the expectation that happier fans may spend more on merchandise.