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The Effect of Ticket Resale Laws on Consumption and Production in Performing Arts Markets


  • Melissa Boyle

    (Department of Economics, College of the Holy Cross, 1 College Street, Worcester, MA 01610, USA)

  • Lesley Chiou

    (Department of Economics, Occidental College, 1600 Campus Road, Los Angeles, CA 90041, USA)


Although most economists assume that ticket scalping is efficient, existing theoretical models make ambiguous predictions of the effect of ticket resale on production and attendance. This study uses variation in state and municipal laws to examine whether prohibiting or restricting resale has a positive or negative impact on consumer attendance and producer entry into arts markets. Our results show that restrictions on resale prices and license requirements stimulate attendance in performing arts events, but decrease the number of unique productions. This suggests that consumers value regulation that restricts prices and requires licensing for resellers over greater variety in productions.

Suggested Citation

  • Melissa Boyle & Lesley Chiou, 2012. "The Effect of Ticket Resale Laws on Consumption and Production in Performing Arts Markets," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(2), pages 210-222.
  • Handle: RePEc:pal:easeco:v:38:y:2012:i:2:p:210-222

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