ticket prices, for example, have dramatically increased in recent years, which presumably has reduced the incidence of underpriced events. Considering the top 25 concert tours in 2001, attendance . gures collected by Billboard Boxscore Research reveal that only 39 percent of the concerts were sold out, and the average occupancy rate across all concerts was 84 percent. Brokers are often quite active in events that do not sell out; indeed, brokers are sometimes left with inventories of unsold tickets. At the most fundamental level, if pro. ts can to be made in secondary markets, why can’t event promoters . gure out a way to capture them? How can brokers survive in the presence of pro. t-maximizing promoters? This paper offers a perspective different from the conventional underpricing arguments on the phenomenon of secondary markets for event tickets. This perspective borrows from the literature on airline ticket pricing, which has developed
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