Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at email@example.com , with comments or suggestions.
Sunday, December 10, 2006
Featured Entry - Ticketmaster's Monopoly
TicketMaster is a problem. Ticketmaster is an automated capacity distibuter program for venues and arenas during shows and games. While on one hand very convenient, it is also strong reminder of why monopolies are no good. Last week, i purchased a ticket to a show in New York City that cost 20$ at the door. To secure my ticket, i decided to purchase it on ticketmaster. Instead of just giving me a 20$ ticket, they gave me a $20 ticket, a $6 convenience charge, $8 processing fee, and charged me $2 to print it out of my own printer. this brought my ticket to a grand total of $36. At a grand total of 36 dollars, it was almost twice the cost of the ticket. TicketMaster is making almost as much money as the cost of the band. this shows how a monopoly like ticketmaster has arbitrary control of the price of the ticket distribution service. At it's very best, the ticket distribution industry can be called an oligopoly becuase of services like LiveNation and Fidelity tickets. But the power of ticket control is still weilded and abused by these few.