Sunday, April 26, 2015
Ticket Scalping
In the group presentation there was a topic on the use of private websites like ticketmaster and stubhub that are legal to sell to the public that I thought was incorrect. If I remember correctly the group said that prices on these websites are monitored so that they is no obscene mark up for individuals to monopolize on. Well this is slightly incorrect. The New York Rangers made it all the way to the Stanley Cup Finals last year in the NHL playoffs and played against the Los Angeles Kings. The ticket prices in the two biggest cities in the United States NY and LA were no where near eachother. The average seat was nearly 3x as expensive in NY then in LA. Stubhub is simply a legal market to sell the product it doesn't prevent outrageous markup because based on the market the product is in people will pay for it. I know I was looking for tickets but saw there was no way to afford them. StubHub is a great way to sell tickets if you can't make it to a game but the markups are still there and no way to stop this process as of now. As an ex season ticket holder to the NYR I know how the prices for tickets change each round of the playoffs but in the conference finals and Finals the average fan could not afford the markup of these tickets being resold to the public. I don't think this is a crime in any fashion. I believe it is more of an auction to see who is willing to pay to go see an event that may not happen that often. Supply and demand as they say. This was just my thoughts after seeing the presentation
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ReplyDeleteIn the presentation the group said nothing about monitoring prices on websites. Given that these online ticket exchange platforms attracts numerous buyers and sellers, competition might drive prices down. However, if most people really want to attend the event (demand for tickets is high), then demand curve will shift rightward and drives up the price. (Given that supply curve is vertical, if demand curves shifts rightward, prices go up.)
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