Political Nitwitery in Michigan
As I mentioned previously, a Michigan state representative wants to cap ticket prices sold on the secondary market for concerts and sporting events to a legally-mandated maximum of 10% above face value. I've argued before on CD that if the 10% price cap applied to tickets sold in the primary market, it would basically put Ticketmaster out of business, since its fees are often in the 20-25% range. But that's not Rep. Geiss's target - he's upset about tickets sold on Seat Geek, Stub Hub, eBay, Craigslist, etc.
In today's Detroit News, I argue that a legally-mandated ticket cap of 10% above face value won't change the underlying market forces that frequently lead to ticket prices selling above face value, and would be an unworkable government price control that would make fans worse off, not better off. And where do these politicians get the infinite wisdom to know that "10% above face value" is the "correct" or "fair" price, and not 5%, 15% or 30%?