Why were FIFA World Cup tickets so cheap? Monopoly pricing, demand quality and two-sided markets

Eichhorn, Christoph; Sahm, Marco

doi:10.1016/j.joep.2009.11.004

Cited by 6 publications

(2 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…By eliminating scalping the tickets went to the fastest (or luckiest) consumers rather than those willing to pay the highest price. Whilst there are possible gains in utility from this, and as previously mentioned in the article by Eichhorn and Sahm (2010), even an argument that this is a form of profit maximisation, it still suggests that the tickets are being underpriced. The difficulty for the promoter is that they do not have an explicit knowledge of what consumers will be prepared to pay, so are relying on estimating a flat price based on the event, and their experience of previous events.…”

Section: Discussionmentioning

confidence: 85%

See 1 more Smart Citation

Simulating markets for ticket sales to major events

Walker

2011

Chan, F., Marinova, D. And Anderssen, R.S. (Eds) MODSIM2011, 19th International Congress on Modelling and Simulation.

View full text Add to dashboard Cite

One of the advantages of living in a major metropolitan centre is the access to major sporting, musical and cultural events. However, in recent years demand for tickets to major events has grown at a much greater rate than the capacity of the venues at which they are held. This increase in demand has led to popular events commonly selling out within minutes of going on sale, and to various, sometimes illegal, forms of secondary markets for tickets such as "scalping". It is an area which is fraught with potential legal, ethical and economic issues and the competing interests of artists, promoters, scalpers, fans and the general public. Different strategies and rules have been trialled by event promoters, legislated by local and central governments, and even mooted by academics, as ways to better manage the sale of tickets to major events. These range from ticket sale limits, staggered ticket releases and anti-scalping laws, through to ticket "lotteries" and auctions, and even suggestions of a futures market for tickets. This paper will present a preliminary examination of several of these strategies for selling tickets to major events using computer simulations of a ticket market. It will examine how different rules and forms of ticket markets can impact on the average price paid by purchasers, the variation in prices paid by purchasers, and the return for the event promoters.

show abstract

Section: Discussionmentioning

confidence: 85%

“…For example, one might consider that a promoter will only be interested in maximising revenues through the highest possible price. However, Eichhorn and Sahm (2010), while examining the pricing of tickets within a monopoly framework in order to answer the question: "why were FIFA World Cup tickets so cheap?" conclude that:…”

Section: Literature Reviewmentioning

confidence: 99%