In the News Teaching Activity – Oasis tickets & surge pricing (Sept 2024)

Is it fair on music fans for ticket prices to surge during periods of high demand?

Students are likely to have heard about the furore over Oasis ticket prices rocketing for fans queuing online for those coveted concert tickets. This CNBC article from 2023 highlights Live Nation and Ticketmaster's monopoly dominance since their 2010 merger, controlling over 70% of the live event and ticketing market. This has led to higher ticket prices, limited competition, and lack of leverage for artists and consumers. Critics argue the company abuses its monopoly position by forcing venues to use Ticketmaster exclusively. Despite competition, no firm has matched Live Nation's scale. Multiple calls have been made for antitrust investigations, but the company denies allegations of improper conduct. Oasis have expressed concern that their fans were being hit with dynamic pricing with standard ticket prices going up from £148 to £355 on Ticketmaster. The UK's Competition and Markets Authority are now investigating Ticketmaster.

The Live Nation and Ticketmaster monopoly of live entertainment (cnbc.com)

1 What are dynamic pricing and surge pricing?

2 Using the information, calculate the increase in a standard Oasis ticket price caused by dynamic pricing.

3 Discuss how the monopoly power held by Live Nation & Ticketmaster can lead to higher prices for consumers.