Another look at anti-scalping laws: Theory and evidence

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Another look at anti-scalping laws: Theory and evidence

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Craig Depken ()

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Craig A. Depken II

Abstract

This paper investigates the impact of anti-scalping laws on the face value of tickets in professional football and baseball. Previous theoretical models have suggested that scalpers might cause an increase in prices at the ticket window because they represent an increase in demand. This paper provides a model in which ticket scalping has an ambiguous impact on ticket window prices, making the actual impact an empirical question. Empirical analysis suggest that in cities with anti-scalping laws average per-game season ticket prices are approximately $2 greater in baseball and $10 greater in football. Anti-scalping laws actually increase team revenues, as the laws have no adverse effect on attendance. Thus, event promoters might have sufficient pecuniary incentive to tacitly or explicitly support anti-scalping legislation. Copyright Springer Science+Business Media B.V. 2007

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 130 (2007)
Issue (Month): 1 (January)
Pages: 55-77
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Handle: RePEc:kap:pubcho:v:130:y:2007:i:1:p:55-77

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References listed on IDEAS
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Dennis Coates & Brad R. Humphreys, 2005. "Novelty Effects Of New Facilities On Attendance At Professional Sporting Events," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 436-455, 07. [Downloadable!] (restricted)
Other versions:
- Dennis Coates & Brad R. Humphreys, 2003. "Novelty Effects of New Facilities on Attendance at Professional Sporting Events," UMBC Economics Department Working Papers 03-101, UMBC Department of Economics. [Downloadable!]
Courty, Pascal, 2003. "Ticket Pricing under Demand Uncertainty," Journal of Law & Economics, University of Chicago Press, vol. 46(2), pages 627-52, October.
Other versions:
- Courty, Pascal, 2002. "Ticket Pricing Under Demand Uncertainty," CEPR Discussion Papers 3443, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)

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