Influence Diagram

An influence diagram for Real Madrid's season ticket decision is shown on the right. The club has one decision to make, the number of season tickets to offer, and faces two uncertainties in the form of ticket demand and construction progress at the start of next season. The arrow between the two chance nodes signifies that ticket demand is realized prior to knowing the status of construction. In reality, ticket sales close in mid July, at least a month before the start of next season. In case construction is delayed, the club is forced to issue refunds. The club's revenue from ticket sales is determined by demand and any potential refunds.