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The Welfare Effects of Ticket Resale / Phillip Leslie, Alan Sorensen.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Leslie, Phillip.
Contributor:
National Bureau of Economic Research.
Sorensen, Alan.
Series:
Working Paper Series (National Bureau of Economic Research) no. w15476.
NBER working paper series no. w15476
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2009.
Summary:
We develop an equilibrium model of ticket resale in which buyers' decisions in the primary market, including costly efforts to "arrive early" to buy underpriced tickets, are based on rational expectations of resale market outcomes. We estimate the parameters of the model using a novel dataset that combines transaction data from both the primary and secondary markets for a sample of major rock concerts. Our estimates indicate that while resale improves allocative efficiency, half of the welfare gain from reallocation is offset by increases in costly effort in the arrival game and transaction costs in the resale market.
Notes:
Print version record
November 2009.

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