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The impact of price discrimination on consumer surplus at popular music concerts

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  • Eckard, E. Woodrow
  • Smith, Marlene A.

Abstract

We estimate consumer surplus gains and losses from concert ticket price discrimination. Fans purchasing low-priced tickets enjoy a surplus gain of about $9.26 per ticket while high-priced ticket buyers suffer a loss of about $17.63 per ticket.

Suggested Citation

  • Eckard, E. Woodrow & Smith, Marlene A., 2013. "The impact of price discrimination on consumer surplus at popular music concerts," Economics Letters, Elsevier, vol. 118(1), pages 222-224.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:222-224
    DOI: 10.1016/j.econlet.2012.10.027
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. 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.
    3. Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
    4. E. Woodrow Eckard & Marlene A. Smith, 2012. "The Revenue Gains from Multi‐Tier Ticket Pricing: Evidence from Pop Music Concerts," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 33(7-8), pages 463-473, October.
    5. Phillip Leslie, 2004. "Price Discrimination in Broadway Theater," RAND Journal of Economics, The RAND Corporation, vol. 35(3), pages 520-541, Autumn.
    6. Phillip Leslie & Alan Sorensen, 2009. "The Welfare Effects of Ticket Resale," NBER Working Papers 15476, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Price discrimination; Consumer surplus; Welfare economics; Popular music concerts;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics

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