Advertisement

Ticket resale, bots, and the fair price ticketing curse

  • Pascal CourtyEmail author
Original Article
  • 53 Downloads

Abstract

The fair price ticketing curse occurs when an event organizer sells tickets at prices that do not correspond to underlying demand conditions and does not want resellers to profit from resale opportunities. The curse has been exacerbated with the advent of online ticketing. The challenge is to facilitate genuine ticket exchange while eliminating resale for profit. None of the attempted public or private solutions solve the problem. We propose a simple mechanism, identify a key set of necessary conditions for it to work, and discuss recent technological innovations that facilitate its implementation.

Keywords

Ticket Pricing Resale law Fairness Greed Robots Centralized exchange 

Notes

Acknowledgements

The Author would like to thank Daniel Rondeau and seminar participants at the University of Victoria for useful comments.

References

  1. Bhave, A., & Budish, E. (2017). Primary-market auctions for event tickets: Eliminating the rents of’bob the broker’? New York: National Bureau of Economic Research.CrossRefGoogle Scholar
  2. Courty, P. (2003a). Some economics of ticket resale. The Journal of Economic Perspectives, 17(2), 85–97.CrossRefGoogle Scholar
  3. Courty, P. (2003b). Ticket pricing under demand uncertainty. The Journal of Law and Economics, 46(2), 627–652.CrossRefGoogle Scholar
  4. Courty, P. (forthcoming). In P. Downward, B. Frick, B. R. Humphreys, T. Pawlowski, J. E. Ruseski, & B. P. Soebbing (Eds.), Secondary ticket markets for sport events. The SAGE handbook of sports economics. Beverley Hills: Sage.Google Scholar
  5. Courty, P., & Pagliero, M. (2013). In V. Ginsburgh & T. Throsby (Eds.), The pricing of art and the art of pricing: Pricing styles in the concert industry. Handbook of the economics of art and culture (Vol. 2, pp. 299–356). Amsterdam: Elsevier.Google Scholar
  6. Cui, Y., Duenyas, I., & Şahin, Ö. (2014). Should event organizers prevent resale of tickets? Management Science, 60(9), 2160–2179.CrossRefGoogle Scholar
  7. Drayer, J. (2011). Examining the effectiveness of anti-scalping laws in a united states market. Sport Management Review, 14(3), 226–236.CrossRefGoogle Scholar
  8. Elfenbein, D. W. (2006). Do anti-ticket scalping laws make a difference online? Evidence from internet sales of NFL tickets. Working paper.Google Scholar
  9. Happel, S. K., & Jennings, M. M. (1995). The folly of anti-scalping laws. Cato Journal, 15, 65.Google Scholar
  10. Kahneman, D., Knetsch, J. L., & Thaler, R. (1986). Fairness as a constraint on profit seeking: Entitlements in the market. The American Economic Review, 76(4), 728–741.Google Scholar
  11. Krueger, A. B. (2001). Supply and demand: An economist goes to the super bowl and he got to deduct it. Milken Institute Review, 3, 22–29.Google Scholar
  12. Leslie, P., & Sorensen, A. (2014). Resale and rent-seeking: An application to ticket markets. Review of Economic Studies, 81(1), 266–300.CrossRefGoogle Scholar
  13. Li, J., Granados, N., & Netessine, S. (2014). Are consumers strategic? Structural estimation from the air-travel industry. Management Science, 60(9), 2114–2137.CrossRefGoogle Scholar
  14. Moore, D. (2009). The times they are a changing: Secondary ticket market moves from taboo to mainstream. Texas Review of Entertainment & Sports Law, 11, 295.Google Scholar
  15. Roth, A. E. (2007). Repugnance as a constraint on markets. The Journal of Economic Perspectives, 21(3), 37–58.CrossRefGoogle Scholar
  16. Sandel, M. J. (2012). What money can’t buy: The moral limits of markets. New York: Macmillan.Google Scholar
  17. Schneiderman, E. (2016). Obstructed view: What’s blocking New Yorkers from getting tickets. http://www.ag.ny.gov/pdfs/Ticket_Sales_Report.pdf. Accessed 3 May 2019.
  18. Sweeting, A. (2012). Dynamic pricing behavior in perishable goods markets: Evidence from secondary markets for major league baseball tickets. Journal of Political Economy, 120(6), 1133–1172.CrossRefGoogle Scholar
  19. Tunçel, T., & Hammitt, J. K. (2014). A new meta-analysis on the WTP/WTA disparity. Journal of Environmental Economics and Management, 68(1), 175–187.CrossRefGoogle Scholar
  20. US Government Accountability Office. (2018). Event ticket sales: Market characteristics and consumer protection issues. Government Accountability Office 18-374.Google Scholar
  21. Waterson, M. (2016). Independent review of consumer protection measures concerning online secondary ticketing facilities. https://www.gov.uk/government/publications/consumer-protection-measures-applying-to-ticket-resale-waterson-review. Accessed 3 May 2019.
  22. Waterson, M. (2018). Ticketing as if consumers mattered. Warwick Economic Research Papers 1177.Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.University of VictoriaVictoriaCanada

Personalised recommendations