I know what we need - We need to regulate more ...

[Tilted]

segments of the marketplace. Letting the market set prices is bad.

Schumer Plans Legislation to Curb Ticket Resales

In the latest move in his battle with Ticketmaster Entertainment Inc., New York Sen. Charles Schumer unveiled plans for legislation that would ban the resale of concert and sports tickets until two days after they first go on sale to the public.

Note to politicians: If a concert ticket can be sold for 3 times its original selling price, on the same day that it was released - then it was mis-priced (too low) to begin with. Despite some sentiment that ticket prices are too high, popular concerts and sporting events are instances where businesses offer consumers much better value than they need to. They could easily charge much higher prices for some of these events, and make a lot more money - but they opt not to. I assume that's for mostly PR reasons.

 

[Larry Gude]

segments of the marketplace. Letting the market set prices is bad.

Schumer Plans Legislation to Curb Ticket Resales



Note to politicians: If a concert ticket can be sold for 3 times its original selling price, on the same day that it was released - then it was mis-priced (too low) to begin with. Despite some sentiment that ticket prices are too high, popular concerts and sporting events are instances where businesses offer consumers much better value than they need to. They could easily charge much higher prices for some of these events, and make a lot more money - but they opt not to. I assume that's for mostly PR reasons.

I can see problems with companies buying up blocks of tickets they intend to resell, tickets they only got because they have some advantage over individuals who would have otherwise gladly bought them at the source.

Be that as it may, one thing I am sure of is that the price and availability of concert tickets is not the best use of the time and energy of the US Senate.

 

[Tilted]

I can see problems with companies buying up blocks of tickets they intend to resell, tickets they only got because they have some advantage over individuals who would have otherwise gladly bought them at the source.

Be that as it may, one thing I am sure of is that the price and availability of concert tickets is not the best use of the time and energy of the US Senate.

I completely appreciate that position, but the phenomena is the consequence of businesses choosing (or making a mistake) to under-price their product, and allowing their business partners (specified or not), for whatever reason, to extract the value consequent to that underpricing. They are allowing other businesses to take a piece of the pie - which is what businesses do in order to facilitate their operations. Sometimes it's in exchange for marketing/promotional services, sometimes it's the retail margins which encourage someone else to retail their product, because they want to focus on production. They make business choices, and establish business relations, which encourage their business partners to do things which they perceive as having value to their business enterprise.

There's nothing inherently inappropriate about that - and businesses should have the right to decide who they have business arrangements with, and the nature of those arrangements. A producer isn't required to sell to any retailer that wants to be part of their products' sales chain - and they are free to make such decisions, in accordance with what they think is in their best interests.

And, in this case, the end consumer isn't getting screwed in any way. They aren't paying more than the market decides is appropriate for the tickets. It's just a question of who gets what portion of the proceeds, and what service (or risk acceptance) they provide in exchange for those proceeds. We should leave those decisions to the businesses involved. Event tickets sales are a quintessential embodiment of the supply/demand pricing mechanism.

 

[Larry Gude]

I completely appreciate that position, but the phenomena is the consequence of businesses choosing (or making a mistake) to under-price their product, and allowing their business partners (specified or not), for whatever reason, to extract the value consequent to that underpricing. They are allowing other businesses to take a piece of the pie - which is what businesses do in order to facilitate their operations. Sometimes it's in exchange for marketing/promotional services, sometimes it's the retail margins which encourage someone else to retail their product, because they want to focus on production. They make business choices, and establish business relations, which encourage their business partners to do things which they perceive as having value to their business enterprise.

There's nothing inherently inappropriate about that - and businesses should have the right to decide who they have business arrangements with, and the nature of those arrangements. A producer isn't required to sell to any retailer that wants to be part of their products' sales chain - and they are free to make such decisions, in accordance with what they think is in their best interests.

And, in this case, the end consumer isn't getting screwed in any way. They aren't paying more than the market decides is appropriate for the tickets. It's just a question of who gets what portion of the proceeds, and what service (or risk acceptance) they provide in exchange for those proceeds. We should leave those decisions to the businesses involved. Event tickets sales are a quintessential embodiment of the supply/demand pricing mechanism.

And sometimes it is simple opportunism where no value is added; only profit for a 'partner' that did nothing more than be in the right place at the right time and that rankles people when they have to shell out $500 for a ticket they wanted but couldn't get at $100 because some 'partner' bought large blocks.

They have a choice, buy it or not, but you're not going to get people to be happy about organized scalpers that, in effect, cost them $400 for NOTHING.
This is nothing more than someone cutting in line at the burger joint at lunch time and tacking on a premium to hand you your food you would have bought anyway.