An analysis of ticket pricing in the primary and secondary concert marketplace
Type
This paper examines the various factors and trends impacting ticket pricing in the concert industry through a survey of literature published on the primary and secondary markets. It explores the primary market's motivation to price concert tickets below the profit maximizing level and the role of the secondary ticket market in capitalizing on excess demand by establishing a new price point for tickets in the market. The paper researches recent tools developed by the primary and secondary market stakeholders including the Ticketmaster Verified Fan Program and SeatGeek's "Deal Ranking" algorithm. Legislation associated with scalping in the secondary ticket market in the United States is reviewed. Finally, solutions are proposed for the primary ticket market to marginalize the impact of the secondary ticket market.