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Ticket Pricing Under Demand Uncertainty

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  • Courty, Pascal

Abstract

This Paper studies a monopolist selling tickets to consumers who learn new information about their demands over time. The monopolist can sell early to uninformed consumers and/or close to the event date to informed ones, it can ration tickets and allow ticket holders to resell. I show that rationing and intertemporal sales are never optimal. More surprisingly, the monopolist cannot do strictly better by allowing resale despite the fact that consumers are willing to pay more when they can resell tickets. I discuss the implications of the model for the pricing practices observed in ticket markets.

Suggested Citation

  • Courty, Pascal, 2002. "Ticket Pricing Under Demand Uncertainty," CEPR Discussion Papers 3443, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3443
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    References listed on IDEAS

    as
    1. Clay, Karen B & Sibley, David S & Srinagesh, Padmanabhan, 1992. "Ex Post vs. Ex Ante Pricing: Optional Calling Plans and Tapered Tariffs," Journal of Regulatory Economics, Springer, vol. 4(2), pages 115-138, June.
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    More about this item

    Keywords

    Ticket pricing; Resale; Price discrimination;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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