Ticket Pricing under Demand Uncertainty
AbstractThis paper studies the case of a monopolist who sells tickets to consumers who learn new information about their demands over time. The monopolist can sell early to uninformed consumers and/or close to the event date to informed ones, or it can ration tickets and allow ticket holders to resell. I show that rationing and intertemporal sales are never optimal. More surprising, the monopolist cannot do strictly better by allowing resale. I discuss the implications of the model for the pricing practices observed in ticket markets.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Law and Economics.
Volume (Year): 46 (2003)
Issue (Month): 2 (October)
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Web page: http://www.journals.uchicago.edu/JLE/
Other versions of this item:
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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