Scalping Scalpers - Or Consumers?
8 Pages Posted: 1 Oct 2012 Last revised: 8 Feb 2013
Date Written: October 1, 2012
Secondary ticket markets for concerts and sporting events have become increasingly competitive over the past several years as states moved to legalize market-priced transactions on these markets and as internet innovation made possible online resale marketplaces and ticket aggregators. These innovations have increased the size of secondary ticket markets and the amount of information accessible to consumers. The increase in competition has squeezed out most of the profits that ticket scalpers used to gouge from ill-informed consumers buying from sellers with market power. At the same time, there are genuine concerns that these new markets fail to reward die-hard fans and artists sufficiently and, as a result, government ought to intervene. This paper argues that, instead of government intervention, the best way to scalp scalpers is to arm consumers with information, and the evolution of secondary markets has increased fans’ weaponry over time.
Keywords: scalping tickets, market price, supply and demand, illegal, legalize, secondary ticket market, economics, government regulation
JEL Classification: H10, K00
Suggested Citation: Suggested Citation