Jeffrey Ely

Jeff Ely is the Charles E. and Emma H. Morrison Professor of Economics at Northwestern University and an accomplished latte-artist. He is co-director of the Center for Economic Theory, a member of several editorial boards and co-author of the blog Cheap Talk.

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3

Dec

The Best Piece On The Economics Of Ticket Sales

Daniel Krieger wrote this for FastCompany magazine and someone named Jeremyville added some fantastic illustrations.  Click on the full-color slideshow at the top to see the full print version of the article.  A key point I tried to make is that the secondary market is very important to primary sellers.  Primary sellers are both less patient and more risk averse than brokers. Brokers provide a valuable service by purchasing tickets early and at a fixed price.  Primary sellers effectively offload the risk of price volatility to the brokers.  In exchange for this service they give the brokers low prices and (on average) re-sale rents.  This is a key economic force that explains many seeming anomalies in the ticket market.  But the way the industry is evolving, primary sellers will soon essentially vertically integrate with the brokerage market by issuing electronic, non-transferrable tickets and organizing an internal exchange in order to capitalize on efficient re-allocation without leaving rents to brokers and without cannibalizing primary sales.

http://www.fastcompany.com/3021505/ticketmaster-stubhub-ticket-wars


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Jeffrey Ely

Jeff Ely is the Charles E. and Emma H. Morrison Professor of Economics at Northwestern University and an accomplished latte-artist. He is co-director of the Center for Economic Theory, a member of several editorial boards and co-author of the blog Cheap Talk.

Click here to blast this page, Asteroids style. Space bar fires, arrows move.

3

Dec 2013

The Best Piece On The Economics Of Ticket Sales

Daniel Krieger wrote this for FastCompany magazine and someone named Jeremyville added some fantastic illustrations.  Click on the full-color slideshow at the top to see the full print version of the article.  A key point I tried to make is that the secondary market is very important to primary sellers.  Primary sellers are both less patient and more risk averse than brokers. Brokers provide a valuable service by purchasing tickets early and at a fixed price.  Primary sellers effectively offload the risk of price volatility to the brokers.  In exchange for this service they give the brokers low prices and (on average) re-sale rents.  This is a key economic force that explains many seeming anomalies in the ticket market.  But the way the industry is evolving, primary sellers will soon essentially vertically integrate with the brokerage market by issuing electronic, non-transferrable tickets and organizing an internal exchange in order to capitalize on efficient re-allocation without leaving rents to brokers and without cannibalizing primary sales.

http://www.fastcompany.com/3021505/ticketmaster-stubhub-ticket-wars


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Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>