笔记

8.13

Tension – treat fairly vs charge price as a block party – for music market- we need to concern about the influence of price on the longevity of fans(customers) or the reputation of musicians

In other markets：

Uber-surge pricing- principle – when demand over supply – charge more

State government- anti-gouging law for essential goods –after hurricane

When price too high- empty house / too low –secondary market

Closer to stage- higher price – this helps customer tie into their own price line –self sort- willingness to buy

Garth mode: expend supply to satisfy demand- while with the fixed price that under the profit maximizing price – avoid the resale market – no secondary market and trade

Secondary market: # we mean high demand concerts and sporting events – in us- secondary market – on average – 1.5 times than face value

Possible reasons：

1. Initial prices are too low – dose not fit into supply and demand equilibrium- if underpriced- secondary market plays a positive support – but harm to customers who want to buy ticket in the first place

2. Uncertainty/ unawareness

Tickets brokers:

Resell/ move underpriced ticket to equilibrium price –reallocate tickets-speculation and risk-taking

How to barrier out Scalpers?

#Each sold ticket has its own registered code- only can be sold on the authorized fans platform-如果黄牛和官方或者演出场所有合作或协议-该方法就毫无可行之处

#dynamic pricing – with the logic of price discrimination

Productivity growth – slow – hospital and university – why health care and university tuition will create a huge burden to families’ and governments’ budget – where does music industry belong to – human capital –labor cost is higher in music industry- than pc company

# that’s why music festivals are welcomed by both bands and audiences – cost can be pressed down – example –one time set up stage can be used by several bands- cut the cost