| Article ID: | iaor200917423 |
| Country: | United Kingdom |
| Volume: | 1 |
| Issue: | 4 |
| Start Page Number: | 379 |
| End Page Number: | 382 |
| Publication Date: | Jan 2003 |
| Journal: | Journal of Revenue and Pricing Management |
| Authors: | Volpano L J |
| Keywords: | yield management |
Recently, top–tickets for The Rolling Stones ‘Lick’ 2002 Tour sold for $350 through the primary market ticket outlets. Yet local ticket brokers estimated demand could yield $2,000 per ticket in secondary markets such as eBay.com. This paper aims to rationalise ticket pricing so as to eliminate such price differentials between the primary and secondary markets. Specifically, tickets are to be sold for a wider array of prices determined econometrically from the optimisation of data obtained related to the attraction, venue and demographics. This will determine an exponentially priced schematic to estimate an optimal set of prices to reduce the differential between primary and secondary ticket prices, capturing more revenue for producers.