Why does no-one discuss negative dynamic pricing?
By @edent
· economics · 4 comments · 350 words · read ~266 times.
Much hullabaloo about Oasis using "Dynamic Pricing" for their concerts. There are far more fans than there are tickets, so prices rise. There are all sorts of complicated economic theories around how efficient markets can be, and whether "reverse Dutch auctions" are sensible. But the end result is always the same - the richest fans get to see their heroes and the rest of us pay inflated prices.
But that's not the only way dynamic pricing works. Some shows don't sell out. Even the biggest names can sometimes fail to fill a massive venue on a wet Tuesday. When an event doesn't have the numbers expected, negative dynamic pricing kicks in.
I'm subscribed a number of "Seat Filler" mailing lists. They offer cut-price tickets to events which haven't sold enough tickets.
Having more bums on seats is good for the show (a bigger crowd is a happier crowd), good for the act (a boost to the ego), and good for the venue (more people buying overpriced drinks and snacks).
Last year, I got tickets to The Who at the O2. For a fiver.
Now. these were nosebleed seats, which were only on sale the day before the event, with limited availability, and the drinks were extortionate. But, also, the tickets were cheap!
This happens all the time! OK, it's unlikely to happen with Oasis - but you would be surprised at the number of big name acts that need to use dynamic pricing like this. I've been to gigs, comedy shows, operas, ballets, concerts, and plays for a fraction of the published ticket price.
Perhaps the future for oversubscribed events is a pure lottery. Perhaps tHe BLocKChaIn will solve the problem of touting. Perhaps people need to accept that no-one is forced to engage with the market.
But, also, perhaps dynamic pricing sometimes lets some people experience culture that they'd otherwise be excluded from?
@blog It does give the phrase "you'd have to pay me to go" new meaning…
@Edent I'm living close to an outdoor venue that puts on a few concerts a year. As nearby residents we'll occasionally get offered free tickets shortly before (occasionally discounted ones in advance too) so I've seen a few things I wouldn't normally have due to that (although they're sometimes loud enough that I can hear, if not see, them anyway 🙂
They also have the advantage that I can walk so no travel/parking costs. I do like the idea of those mailing lists though:-)
@Edent Honestly, I'd rather the band get the excess money rather than see scalpers get it
@blog The answer is simple. Nobody is discussing it because it is not even close to as wide spread as “dynamic pricing” which is just a phrase to mean “the price only goes up”.
This isn’t dismissing the existence. Only acknowledging how often it is applied and how the phrase is misapplied.
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