Wednesday, February 16, 2011

Ticket Prices

Matt Yglesias talks about ticket prices in context of LCD Soundsystem's rant against scalpers screwing out genuine fans. Key point:
Optimal allocation of LCD Soundsystem tickets requires demand-responsive ticket pricing. But good rock bands are not composed of narrow-minded amoral profit-maximizers. Consequently, they’re motivated to price tickets at a lower level than the market will bear leading, in turn, to middlemen getting the rents. What’s needed is a way for bands to price tickets at demand-responsive levels in a way that’s consistent with the norm that the guys in a cool band shouldn’t be narrow-minded profit-maximizers. The best solution here, I think, is charity.
Someone should tell Matt Yglesias that even non-profits have trouble solving that issue.