Across all listing1 - revenue per year (Happel and...

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Across all listings, eBay estimates that it will sell $150 million worth of tickets in 2002. Although this . gure may seem high, it represents only about 1 percent of total ticket sales based on the Forester Research estimate. On a given day (in August 2002),more than 22,000 tickets were for sale on eBay, with about 9,000 for concerts alone, and auction prices above $1,000 were not uncommon. Although some of the exchanges in the secondary market are driven by early buyers who genuinely intended to attend the event at the time of purchase and changed their mind, the majority of exchanges are initiated by professional brokers who buy tickets early with the intent of reselling them at a pro. t. Broker markets are usually quite competitive in most large metropolitan areas. Brokers are typically small . rms with a few employees and about $3 million in
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Unformatted text preview: revenue per year (Happel and Jennings, 2002). They advertise in places like phone directories and on the Internet. Some even post bonds to guarantee the service they provide (one concern being that they sell forged tickets). They typically carry a large inventory of tickets for many events with a variety of seats, although they tend to concentrate on the best seats in the venue. Brokers may also provide seating charts, updated event calendars and sometimes packages including accommodation and other travelling arrangements. Brokers usually sell tickets at prices above face price. Also, whilemost concert venues divide the house into a few sections and offer the majority of tickets at two or three price points, brokers may charge different prices for different seats within the same section...
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