When Promoters Like Scalpers

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2005
Volume: 14
Issue: 2
Pages: 477-508

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:bla:jemstr:v:14:y:2005:i:2:p:477-508
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25