RaceBoarder
Waiting for the Snow to fly...
Re: Golf thread
I used the numbers for simplicity sake. The concept is the same in real life, albeit with much more money being involved.
In B, it's the same demand, but the price is artificially inflated to the benefit of brokers. That is the problem.
Article explaining the concept
I'd gladly pay a higher value directly to the team or venue. I'm not paying more to an entity who scammed the system using inside methods and bots.
But in your example the $2000 is an artificially low figure. Even the $2400 may be. We wouldn't know until all of the tickets were put on the exchange. If the market says that all of the tickets would be sold at $30, is there some reason the "burden" on the fans to get in should only be $2000, using your example?
Aren't a lot of the brokers either directly connected with or in contract with the event sponsor? I know that a lot of professional teams and universities have ticket exchanges, in many instances "exclusive" or "sponsored".
Take the Ryder Cup, the event that prompted this discussion. I think PrimeSports is the company that is handling their ticket exchange. I think that's the same company that does the ticket exchange for the College World Series. My guess is that both the college world series and the ryder cup are benefiting financially from that relationship.
The secondary market only works if there is demand. I remember the Frozen Four in Columbus in 2005 where people couldn't get $10 for their tickets.
The sponsors are doing things the correct way. They put some tickets out on the market, but a limited number, thus assuring a base of people shut out from the tickets. The limited nature of the tickets creates an artificial demand (see: Beanie Babies) which then causes people to blow $150 to see Taylor Swift.
The only reason people are paying higher than face value for tickets on the secondary market is.......people are paying higher than face value on the secondary market.
I used the numbers for simplicity sake. The concept is the same in real life, albeit with much more money being involved.
In B, it's the same demand, but the price is artificially inflated to the benefit of brokers. That is the problem.
Article explaining the concept
I'd gladly pay a higher value directly to the team or venue. I'm not paying more to an entity who scammed the system using inside methods and bots.