When promoters like scalpers


Karp, Larry S. and Perloff, Jeffrey M. (2005) When promoters like scalpers. Journal of Economic and Management Strategy, 14, (2), 477-508. (doi:10.1111/j.1530-9134.2005.00049.x).

Download

Full text not available from this repository.

Description/Abstract

If a monopoly supplies a perishable good, such as tickets to a performance, and is unable to price discriminate within a period, the monopoly may benefit from the potential entry of resellers. If the monopoly attempts to intertemporally price discriminate, the equilibrium in the game among buyers is indeterminate when the resellers are not allowed to enter, and the monopoly's problem is not well defined. An arbitrarily small amount of heterogeneity of information among the buyers leads to a unique equilibrium. We show how the potential entry of resellers alters this equilibrium.

The moment a performance begins, that seat is dead … . It's like fruit. It's perishable.
— Jeffrey Seller, producer of Rent.
New York Times, July 20, 2003.

Item Type: Article
ISSNs: 1058-6407 (print)
Related URLs:
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 39699
Date Deposited: 29 Jun 2006
Last Modified: 27 Mar 2014 18:25
URI: http://eprints.soton.ac.uk/id/eprint/39699

Actions (login required)

View Item View Item