I enjoy attending rock concerts very much and try to see as many shows that my time and wallet permit. Over the last couple years I have noticed that arenas have been far, and I mean far, from sold-out at many shows.
I see this as a response to very high ticket prices and absurd Ticketmaster service charges. When 30-50% of the seats are empty [a surplus], shouldn't that send a signal to Ticketmaster to cut prices? I believe the demand for most concerts are relatively price elastic (there are exceptions like a Led Zeppelin reunion show) therefore lower prices should only increase revenue.
Ticket promoters seem to be in the process of researching this idea. After a handful of shows failed to sell many tickets at regular prices, LiveNation devoted July 29 to $10 tickets for select shows. Sounds good to me, but what about all the people that paid over $70 with service charges for the same ticket? Here, I am reminded of the textbook example of a price discriminating monopolist.
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