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The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry


  • Pascal Courty
  • Mario Pagliero


Concert tickets can either be sold at a single price or at multiple prices corresponding to different seating categories. We study the relationship between price discrimination and revenue by examining variations in the number of seating categories across concert, tour, artist, location, and time. Offering multiple seating categories leads to revenues that are approximately 5 percent higher than with single price ticketing. The return to price discrimination is higher in markets with more heterogeneous demand, in smaller venues and in more competitive markets. The return of increasing from three to four categories of seating is about half that of increasing from one to two.

Suggested Citation

  • Pascal Courty & Mario Pagliero, 2009. "The Impact of Price Discrimination on Revenue: Evidence from the Concert Industry," Carlo Alberto Notebooks 105, Collegio Carlo Alberto.
  • Handle: RePEc:cca:wpaper:105

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    References listed on IDEAS

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    Cited by:

    1. Siegert, Caspar & Ulbricht, Robert, 2014. "Dynamic Oligopoly Pricing: Evidence from the Airline Industry," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 463, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    2. Drayer, Joris & Rascher, Daniel A. & McEvoy, Chad D., 2012. "An examination of underlying consumer demand and sport pricing using secondary market data," Sport Management Review, Elsevier, vol. 15(4), pages 448-460.
    3. Jong-Hee Hahn & Jinwoo Kim & Sang-Hyun Kim & Jihong Lee, 2016. "Price Discrimination with Loss Averse Consumers," Working papers 2016rwp-97, Yonsei University, Yonsei Economics Research Institute.
    4. Vlad Radoias, 2017. "When Price Discrimination Fails – A Principal Agent Problem with Social Influence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(2), pages 212-221, March.
    5. Hendrik Sonnabend, 2016. "Fairness constraints on profit-seeking: evidence from the German club concert industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 529-545, November.
    6. Michael Rushton, 2011. "Pricing the Arts," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 49 Edward Elgar Publishing.
    7. 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.

    More about this item


    Price discrimination; return to price discrimination; second degree price discrimination;

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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