Massive week for Swifties -- Ticketmaster may soon face a DOJ antitrust lawsuit AND the new album drops this Friday.... rollingstone.com/music/music-ne…
@johnmarknewman Very curious to see if this case will look at the Ticketmaster business model that was causing consumer pain decades before the Live Nation merger, and has been adopted by the ticketing company divested from that merger. x.com/PGunigantiAT/s…
@johnmarknewman Very curious to see if this case will look at the Ticketmaster business model that was causing consumer pain decades before the Live Nation merger, and has been adopted by the ticketing company divested from that merger. x.com/PGunigantiAT/s…
I know nothing about this industry. Was the gist of Rosen’s strategy to induce venues to sign exclusive contracts with Ticketmaster by taking on the costs of putting on an event, monetizing them in service charges (on top of base ticket prices), and splitting the proceeds with venues? Versus the old model was that the ticket seller would just be a ticket marketer, charging the venue for the service of marketing their tickets?
@PGunigantiAT @johnmarknewman If this is right, it sounds like the main problem was the exclusive dealing, and the bait-and-switch of advertising a base ticket price and then piling up service charges at checkout.
@musharbash_b @johnmarknewman I don’t think eliminating drip pricing covers it. Ticketmaster supports legislation to mandate that all ticket providers (incl 2ndary market) show all-in price. That’s a good sign that they don’t think drip pricing is crucial to their model. When DOJ investigated in early ’90s…
@musharbash_b @johnmarknewman …the agency closed the probe bc venues were the customers, and the venues told DOJ to leave Ticketmaster alone.
@PGunigantiAT @musharbash_b Sounds like something I've heard Steve Salop talk about: splitting up monopoly rents can be a good incentive for firms to enter into vertical arrangements w/ a monopoly. (Contra the Chicago assumption that manufacturer incentives align w/ consumers rather than w/ distributors.)
@johnmarknewman @PGunigantiAT @musharbash_b Doesn’t the welfare effect of exclusive dealing by a supply chain intermediary to capture / create rent with upstream mfgrs depend on how much of rent capture is passed down to consumers. The welfare issue of countervailing power was debated by Stigler & Galbraith. Today #PBMs