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lightly that price - .Therefore,the promotercannotpro....

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as brokers would enter and undercut slightly that price. Therefore, the promoter cannot pro. tably sell tickets in the late market. In short, the only equilibrium arises when the promoter sells tickets early to capture the diehard fans and selects a venue that can cater both to diehard fans and busy professionals. The key result is that pro. t maximization on the side of the promoter leaves pro. t opportunities for brokers. The promoter cannot capture the pro. ts earned by brokers and even more surprisingly, the promoter cannot preempt brokers and deter them from entering. The promoter would like to sell to busy professionals in the late market but cannot do so, because brokers have already bought the tickets that were meant for them. Now return to the assumption that only brokers can resell tickets. If diehard
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