. When concert tickets are priced below equilibrium, who gets them? Is this distribution of tickets fairer than a pure market distribution? Is it more efficient? Who gains or loses if all the tickets are resold (scalped) at the market-clearing price?
When concert tickets are priced below equilibrium, they are usually sold at a price lower than what would be established in a free market. This situation typically occurs when event organizers or ticket sellers intentionally lower the price to attract more people or as a promotional strategy.
Who gets the tickets when they are priced below the equilibrium largely depends on the specific circumstances and mechanisms in place for ticket sales. However, generally speaking, a lower ticket price will likely attract more consumers than if the price was at equilibrium. As a result, a larger portion of the tickets may be purchased by individuals who are more price-sensitive or may not have been willing or able to afford the ticket at the equilibrium price.
Regarding whether this distribution of tickets is fairer than a pure market distribution, it can be subjective. Some argue that a lower price makes the tickets more accessible to a wider range of individuals, allowing more people to attend events who otherwise might not have been able to afford it. This perspective considers it fairer because it increases the inclusivity and accessibility of the event.
On the other hand, others may argue that a pure market distribution, where tickets are sold at their equilibrium price, is fairer. In a pure market distribution, tickets would be allocated to those who value them the most and are willing to pay the highest price. This perspective considers it fairer because it rewards those with a higher willingness to pay and respects the principles of supply and demand.
When it comes to efficiency, a pure market distribution generally ensures that resources (in this case, concert tickets) are allocated to those who value them the most. This allows for efficient use of resources and ensures that tickets are not wasted on individuals who have a relatively lower value for them.
If all the tickets are resold (scalped) at the market-clearing price, it is the scalpers or resellers who would gain. Scalpers purchase tickets at below-equilibrium prices and then sell them at or above the equilibrium price to make a profit. In this scenario, the event organizers or original ticket sellers would not benefit from the increased ticket prices since the scalpers are the ones reaping the profits. On the other hand, consumers who were not able to purchase tickets at the original, below-equilibrium price may lose out as they would face higher prices when buying from scalpers.
It's worth noting that the fairness and efficiency of ticket distribution is a complex and debated topic, with different perspectives based on individual values and beliefs about market dynamics and social equality.