Question

More shows: The article states that there needs to be more demand than supply for scalpers to make money. This relates to the idea of a "competitive market." If you have many choices of fairer-priced tickets, there's no reason to go for the more expensive ones. The strategy also prevents a ticket shortage, during which the last hold-outs, the scalpers, would raise their prices much higher. Beat the scalpers at their own game: By raising the prices on the upper-tier tickets, you're limiting the demand pool to only the people willing and able to pay the highest prices. This makes it much more difficult for scalpers to make any profit, since the high-tier tickets regular price already prices out most people. Go paperless: There's not really an economic basis to this strategy. It's just a good operational tactic. Don't sell the first two rows: The economic basis of this could be that the lower-priced tickets have the added value of coming with a chance to get picked to be in the first two rows. Therefore, the consumer surplus is higher for those who value the chance to get into front row seats

what is your thoughtful in this answers

Answer 1

The Scalpers want to create more demand than supply.

Upper Tier Tickets: There is no harm in raising the prices for upper tier tickets as in this way no doubt, only a limited number of people will buy those tickets, but huge revenues can be earned as price is high and these tickets are only meant for super rich people.

Go Paperless: As already mentioned this strategy is not all practical. But it can be applied with little twist. As some discount can be offered to people who book online and also advance shows. As this will help in saving printing cost of tickets.

Age basis discount: Some discounts can be offered to students ans senior citizens as this will help in creating more demand for tickets . Whatever discount is offered the same amount can be recovered by selling tickets at high price as referred in first scenario.(Upper tier tickets).

Don't sell for first two rows: This is a good strategy. Suppose Customer A is ready to buy ticket for first row at $900 , Customer B for $600 and Customer C for $300. A's consumer surplus is $600. B's surplus is $300 and C has no surplus. The more number of customers willing to pay more price for first two rows will have more consumer surplus and ultimately leading to more revenue.