Ticket Scalping And Housing Vouchers: A Tale Of Limited Supply

Concert ticket prices have soared to new heights this year, causing angst and financial stress for live music fans. Blame has been pointed at ticket sales companies like TicketMaster and profiteering scalpers. President Biden has even proposed legislation aimed at the problem. But similar to the housing market, the unaffordability of music tickets is due to a fundamental lack of supply.

The Mismatch Between Demand And Supply Of Live Concerts

In the live concert market, there is a mismatch between the price that an artist like Taylor Swift or Beyonce would like to charge their fans and the price that the wealthiest fans are willing to pay. These stars may want to provide all their fans with affordable concert tickets, but wealthy fans are willing to pay hundreds or even thousands of dollars for guaranteed admission. However, stadiums can only hold so many attendees and artists can only do so many shows without becoming exhausted. With ticket availability restricted, the demand from affluent fans results in ticket prices that are unaffordable to the average fan. Some fans get priced out altogether, and even fans willing to spend hundreds of dollars may only be able to afford seats in the nosebleed sections.