Friday, July 06, 2012

Louis C.K. Battles Ticket Scalpers Using Basic Economics: He's Increasing Supply by Adding Shows

Comedian Louis C.K. is battling ticket scalpers (see recent related CD post here) for his upcoming national tour using some basic principles of economics: he's increasing the supply of tickets by adding shows to meet fan demand.  The market conditions that allow ticket scalpers brokers like Seat Geek and StubHub to sell tickets above face value are: a) ticket prices that are too low relative to the true market price, and/or b) a supply of tickets that is too low, relative to demand.  

When enough tickets are supplied to satisfy fan demand, the secondary market for tickets above face value is limited. Louis C.K. apparently understands that he can combat the ticket scalpers by increasing the supply of tickets in markets where his originally scheduled shows sold out, and that's what he's doing.  So far Louis C.K. has added shows in New York City (two shows added), Tampa (one show added), Fort Lauderdale (one show added), Seattle (one show added), St. Louis (one show added), Dallas (one show added) and Austin (one show added).  In most cities, if his first show at 7:30 or 8 p.m. sold out, he's added a second show at 10 p.m. 

Musicians, artists and other performers should take an economics lesson from Louis C.K. and realize they have been largely responsible for creating a secondary market for tickets to their performances and they have been supporting ticket scalpers by under-supplying tickets relative to fan demand. Increase the number of tickets to satisfy fan demand, and the secondary market for tickets above face value evaporates.

6 Comments:

At 7/06/2012 5:10 PM, Blogger Paul said...

Love Louis C.K.'s comedy. Too bad he's such a nitwit when it comes to politics.

 
At 7/06/2012 10:06 PM, Blogger Pulverized Concepts said...

On a scale of ten, as a world problem, ticket scalping must come in at about .001. Who, exactly is harmed?

 
At 7/06/2012 11:47 PM, Blogger KauaiMark said...

The big question, is it working?

Are tickets being sold for pretty much face value or are they still at a premium?

 
At 7/07/2012 6:10 AM, Blogger Jon Murphy said...

Love Louis C.K.'s comedy. Too bad he's such a nitwit when it comes to politics.

At least you can separate the two.

I'm a Jackson Browne fan, but his politics are naive at best.

I'm a huge Bruce Springsteen fan.

All I know is I listen to them for their music, not political view.

 
At 7/07/2012 6:55 AM, Blogger Gene Hayward said...

Somewhat related and a favorite topic for Dr Perry---- when did the term change from "rent-contolled to "rent- stabilized"? How warm and fuzzy is that.

http://www.nytimes.com/2012/07/08/realestate/rent-stabilized-apartments-ever-more-elusive.html

 
At 7/15/2012 11:21 PM, Blogger uii profile said...

I would like to thank you for the efforts you have made in writing this article
nice post, that's very interesting information thanks for sharing :)
I introduce a Economics student in Islamic University of Indonesia Yogyakarta

 

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