The other interesting point to note in the tickets market is the growth of premium tickets. That might mean you get into a “VIP area”. Or even a meet and greet with the band, a signed picture or something.
Wednesday, June 5, 2013
Do the Rolling Stones Need to Price Discriminate More?
So claims Peter Smith in "Demand elasticity and variable pricing as illustrated by the Rolling Stones." He noted that the recent show at the Staples Center in Los Angeles did not sellout its allocation of $600 seats as expected. Instead, the concert promoter released extra $85 seats to fill the arena. This was the launching point for a discussion of concert price discrimination (called 'variable pricing' in the article). The trick is to identify less elastic customers from more elastic customers and there are mechanisms.