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The impact of price discrimination on consumer surplus at popular music concerts

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  • Eckard, E. Woodrow
  • Smith, Marlene A.

Abstract

We estimate consumer surplus gains and losses from concert ticket price discrimination. Fans purchasing low-priced tickets enjoy a surplus gain of about $9.26 per ticket while high-priced ticket buyers suffer a loss of about $17.63 per ticket.

Suggested Citation

  • Eckard, E. Woodrow & Smith, Marlene A., 2013. "The impact of price discrimination on consumer surplus at popular music concerts," Economics Letters, Elsevier, vol. 118(1), pages 222-224.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:222-224
    DOI: 10.1016/j.econlet.2012.10.027
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    References listed on IDEAS

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    1. Courty, Pascal & Pagliero, Mario, 2012. "The Pricing of Art and the Art of Pricing: Pricing Styles in the Concert Industry," CEPR Discussion Papers 8967, C.E.P.R. Discussion Papers.
    2. E. Woodrow Eckard & Marlene A. Smith, 2012. "The Revenue Gains from Multi‐Tier Ticket Pricing: Evidence from Pop Music Concerts," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 33(7-8), pages 463-473, October.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    4. Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
    5. Phillip Leslie, 2004. "Price Discrimination in Broadway Theater," RAND Journal of Economics, The RAND Corporation, vol. 35(3), pages 520-541, Autumn.
    6. Phillip Leslie & Alan Sorensen, 2009. "The Welfare Effects of Ticket Resale," NBER Working Papers 15476, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Price discrimination; Consumer surplus; Welfare economics; Popular music concerts;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics

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