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Unformatted text preview: rationale, promoters play a public relations game to dissociate themselves from the bad image that is associated with selling tickets at large premiums. This rationale is consistent with the popular debate on ticket scalping and with the justi. cation for resale laws that brokers deprive consumers from the right to buy tickets at face price (Diamond, 1982). Note, however, that prohibiting brokers will bene. t consumers only if promoters do not increase prices in the late market. This insight suggests a second rationale for why promoters may want to deter brokers, and this is because they want to capture the pro. ts that...
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This note was uploaded on 02/24/2010 for the course ECON 1313212 taught by Professor John during the Spring '09 term at The School of the Art Institute of Chicago.
- Spring '09