| Sumario: | The Meany Center for Performance Arts is exploring the optimal seating zone arrangement and pricing strategy for its main theater with approximately 1200 seats divided into four zones. Given the historical patron demand, the goal is to maximize net profits by adjusting ticket prices based on zone quality, customers' sensitivity to pricing, popularity and the type of performance. We first estimate the demand function through linear regression in double log form following the paper "Revenue and attendance simultaneous optimization in performing arts organization" (Baldin, Bille, Ellero, and Favaretto 2018). Using this demand function, we then solve a nonlinear maximization problem through PYTHON's Gurobi packages to get the optimal value of ticket price for maximal profits. Overall, this project will enhance profit for Meany Hall, provide pricing insights for future performances, and demonstrate the application of economic theories and discrete math modeling to benefit the community.
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