[HN Gopher] How to sell tickets fairly
       ___________________________________________________________________
        
       How to sell tickets fairly
        
       Author : barnabask
       Score  : 191 points
       Date   : 2022-11-19 02:12 UTC (20 hours ago)
        
 (HTM) web link (barnabas.me)
 (TXT) w3m dump (barnabas.me)
        
       | alar44 wrote:
       | It's straight up supply and demand. I have no idea why anyone is
       | surprised why scarce goods are expensive. Their is no solution.
       | Idk unless you want to socialize entertainment or something. Give
       | out entertainment credits.
        
       | SergeAx wrote:
       | I have a very valid question: if this method was used to sell
       | tulips in XVII, how it can be patented in 2020?
        
       | underyx wrote:
       | > Two buyers might try for the same exact seats at the same
       | moment, but that is much less likely in a slow single-bid auction
       | like this
       | 
       | Well except that everyone would try to grab the very last ticket,
       | which would be the cheapest.
        
       | patmcc wrote:
       | The obvious fix to bots and scalpers is just to not allow ticket
       | transfers - you give your name when you buy the ticket and show
       | your ID at the door. Why this isn't the current process is left
       | as an exercise to the reader.
        
         | googlryas wrote:
         | Because people drop out last minute and might want to take a
         | different friend.
        
           | kodt wrote:
           | I've been to events that do this and if someone can't make it
           | tough luck. But it prevents scalping at least. Every system
           | has pros and cons.
        
             | Gigachad wrote:
             | Better solution is to just price the tickets higher.
             | Scalpers are only taking advantage of arbitrage. This
             | requires a bit of complex demand estimation up front
             | though.
        
               | iambateman wrote:
               | This was the point of the article. Or at least, how to
               | reduce the arbitrage incentive without the complex demand
               | estimation.
        
               | kodt wrote:
               | That prices out more fans who can't afford it though,
               | something that some artists are trying to avoid.
        
               | MichaelZuo wrote:
               | I don't see why they would outweigh the fans who want to
               | make last minute changes?
               | 
               | In any solution there are those who get the short end of
               | the stick.
        
             | googlryas wrote:
             | A lot of artists don't want to perform in a venue with 20%
             | empty seats
        
           | dec0dedab0de wrote:
           | I went to a concert that requires you to match your ticket,
           | but allowed you to sell tickets on a site they control for
           | the face value. I think the buyer has to pay a transaction
           | fee as well.
           | 
           | I got the tickets by signing up and they took my credit card,
           | and charged me when I was next in line and someone had
           | tickets for sale. It was pretty neat, though I suspect I
           | lucked out because a bunch of people sold their tickets when
           | they announced vaccines would be required (September 2021).
        
             | bscphil wrote:
             | "I will sell you this ticket on the marketplace for
             | $facevalue if you will paypal me $500 - $facevalue"
        
               | dec0dedab0de wrote:
               | There was no market place. Just fifo queues of people
               | willing to buy tickets, and tickets for sale. that
               | constantly works its way down to atleast one of them
               | being 0.
               | 
               | I signed up for the main concert and a few of the after
               | parties, and over the next month I got emails saying I
               | had purchased tickets for the various events.
        
               | bscphil wrote:
               | If that's the case then it doesn't solve the problem of
               | wanting to take a different friend, unless there are
               | plenty of tickets available.
        
         | llamataboot wrote:
         | And if you get sick or if you don't know if you can go but want
         | to?
        
           | [deleted]
        
         | iopq wrote:
         | I wasn't able to go to a convention because my girlfriend
         | already bought plane tickets to Las Vegas. If I weren't able to
         | sell the ticket, there would be no way for me to recoup the
         | cost
        
           | notyourwork wrote:
           | Shit happens? Lots of things have the same problem but if you
           | bought steaks from a butcher and you came home to find that
           | your girlfriend already prepare dinner?
        
             | iopq wrote:
             | In the system that I can resell my ticket I don't have a
             | loss, in a system where it's by name I can't
             | 
             | I believe it should be auctioned anyway, so that the people
             | with the highest desire to go can put their money towards
             | it. This is the most practical solution to the problem -
             | the organizers get paid what the tickets are worth, anyone
             | who wants to go knows how much the tickets will go for,
             | scalpers become futures traders
        
               | kodt wrote:
               | Ok but what about someone with not much money, but time.
               | They may be willing to camp out for several days
               | (certainly desire there) but would lose out to someone
               | with money who can easily afford it.
        
               | therealdrag0 wrote:
               | Quoting GP, "Shit happens? Lots of things have the same
               | problem."
               | 
               | If bands want to lower ticket prices then they can play
               | in bigger venues or more days. Play until you don't sell
               | out. Supply and demand.
        
               | Jarwain wrote:
               | The problem here is when artists want their tickets to go
               | to any fan, and not just fans who have a lot of
               | disposable income.
        
               | notyourwork wrote:
               | No ones buying your resold steak from the butcher. Life
               | happens but that's a minority use case. Not the example
               | to design around.
        
             | Marsymars wrote:
             | Not a great analogy; one "shit happens" situation has real
             | physical reasons behind it that can't be changed, the other
             | is simply procedural.
        
         | musicale wrote:
         | Some venues do this, but it does slow down entry (though during
         | the pandemic some venues where checking IDs anyway along with
         | covid test results, etc..)
         | 
         | AXS requires that you use their app and it must be logged into
         | the account that purchased the tickets. The QR codes need to be
         | refreshed before entry and expire in 60 seconds.
         | 
         | This presumably requires scalpers/bots to create an account per
         | ticket purchase, and there is probably a limit on the number of
         | accounts that can share the same payment method and address.
        
           | BoorishBears wrote:
           | AXS allows them to resell on their own platform, so "the
           | account that purchased the tickets" doesn't have to be the
           | one that _originally_ purchased the tickets.
        
             | musicale wrote:
             | Yes, it includes resale on its own platform. As I noted,
             | I'm not sure this prevents scalping, but it seems like it
             | would require bulk scalpers to create a large number of
             | accounts, and presumably it allows AXS to take a cut and to
             | monitor it.
             | 
             | Also I believe they limit the resale markup to 10% above
             | the face value. This seems good for buyers and fair to
             | sellers, and it may also reduce the profit for scalpers.
             | 
             | I imagine they could also ban resale of tickets for certain
             | shows if they wanted to.
        
               | BoorishBears wrote:
               | You can also transfer tickets on their platform, so even
               | if there's a cap you can go off-platform for payment and
               | "transfer" (aka sell) through the platform
               | 
               | AXS is really not invested in trying to stop scalpers,
               | they do all this to defeat double use of tickets.
        
         | musicale wrote:
         | I remember Green Day doing a local show where you had to pay
         | cash at the door.
         | 
         | This seems to address botting, though scalping organizations
         | can still pay people to stand in line (and presumably take a
         | cut when they are paid to give up their spots.)
         | 
         | Personally I think this approach helps out kids who have time
         | to wait in line but don't necessarily have the money to pay
         | huge markups and fees from the secondary market.
        
           | malermeister wrote:
           | To prevent scalping, one could just write the name of the
           | person on the physical ticket at purchase time and then check
           | ID at the entrance.
        
             | judge2020 wrote:
             | Indeed, maybe with a more bulletproof implementation though
             | (eg. you must show the same driver's license, enforced via
             | matching the pdf417 on the back at purchase and entry)
        
           | pclmulqdq wrote:
           | The simple solution to getting fans rather than grifters is
           | to make the tickets cost something other than money. Time is
           | a nice obvious cost element to add.
           | 
           | If only we could channel that time more productively (and in
           | a more palatable way) than having people wait in line.
        
             | hunter2_ wrote:
             | Sounds analogous to mining cryptocurrency with proof-of-
             | work.
        
             | culturedsystems wrote:
             | Taylor Swift did do something a bit like this this for a
             | previous tour - you could get early access to the ticket
             | sales by doing various kinds of fan activities, including
             | buying physical copies of her records, watching videos, and
             | posting on social media [1]. People were kind of mad about
             | it, although I think in part that was because the "fan
             | activities" that gave you the best chance to get tickets
             | were the ones that also involved buying things.
             | 
             | [1]: https://www.theguardian.com/music/2017/aug/31/bad-
             | blood-is-t...
        
             | udia wrote:
             | How would you measure/trade time? Other than with the
             | approximation of using money.
        
         | diiaann wrote:
         | I went to Roland Garros and this is how they did it. You also
         | were allowed to return the ticket to the pool and the event
         | resold it at face value.
        
         | foresto wrote:
         | "Papers, please."
         | 
         | How could it be done without invading privacy?
        
           | hiccuphippo wrote:
           | Remove the reason why showing your papers is a privacy issue
           | in the first place.
        
           | musicale wrote:
           | I'm not sure it can be easily.
           | 
           | However, many venues were already checking ID for over 18/21
           | shows and also covid test results during the pandemic.
           | 
           | Also regular buyers already have to provide contact and
           | payment info (usually very personally identifiable.)
           | 
           | Some venues have tried to fight scalping by requiring
           | presentation of the card used for payment - though obviously
           | that disadvantages cash buyers and scalpers can still use
           | burner cards which they provide with the ticket.
        
           | stevefan1999 wrote:
           | zero knowledge proof
        
           | [deleted]
        
           | HWR_14 wrote:
           | I'm not sure "privacy preserving" is enough of a selling
           | point.
        
         | judge2020 wrote:
         | This is what newer Pearl Jam concerts do - they sell on
         | Ticketmaster, but made a deal where you can't transfer the
         | tickets to anyone else, and must present a Photo ID upon entry
         | to the venue with a name that matches the name on the billing
         | address.
        
           | glandium wrote:
           | So, you can't offer tickets?
        
         | ydnaclementine wrote:
         | Ticketmaster collects a "service fee" when you resell on their
         | app
        
         | littleJeck wrote:
         | Australia has a few "major events" laws aimed at preventing the
         | worse of scalping. They mostly require that any reselling not
         | be more than a fixed percentage of the original resale price (I
         | think it's 20% from memory). While not perfect, it does prevent
         | the insane ticket prices.
         | 
         | This is all managed through an offical resale partner with
         | ticket tek and ticket master. You can only transfer tickets
         | officially though the site, with options to do it for no (or
         | low) charge if you're sending it to a mate.
         | 
         | I've used the service quite a bit, picking up tickets on the
         | day of an event. I've had some wins buying tickets for ~30% of
         | the original price, but also plenty of times paying slightly
         | over the original price or I've missed one event as there were
         | no available tickets. It's just something I've come to expect
         | for the flexibility it provides.
         | 
         | I think the majority of people use this service rather than
         | trying a third party as it's official, easy for the seller and
         | no one wants to support insane scalpers.
         | 
         | The only problem I've seen with the system is events can elect
         | to not allow reselling on the platform till the event is sold
         | out. This can prevent people recouping their losses if they
         | can't attend the event, and stops me from potentially getting a
         | small deal.
        
         | justinlkarr wrote:
         | In New York State, it is illegal to prohibit the transfer of
         | tickets, which complicates most obvious approaches to stopping
         | scalpers. https://www.nysenate.gov/legislation/laws/ACA/25.30
        
           | bombcar wrote:
           | This appears to mainly apply to season tickets and
           | subscription-based tickets, at least at first glance.
        
             | justinlkarr wrote:
             | Look at paragraph (c), a little pro-reseller nugget buried
             | in an otherwise very consumer friendly law. That paragraph
             | is the reason obvious anti-scalping practices can't work in
             | one of the US's largest live event markets.
        
           | judge2020 wrote:
           | If I'm not mistaken, this[0] seems to be a commentary on the
           | law. As I understand it after having read that article, the
           | law seems to be in an effort to encourage reselling by the
           | regular person in case of travel/event plans changing, while
           | introducing fines to prohibit egregious scalpers. However, it
           | seems it's just some fines for these activities, and I can't
           | find any case where scalpers were convicted and fined under
           | this statute (but maybe my Google-fu is weak).
           | 
           | 0: https://brooklynworks.brooklaw.edu/cgi/viewcontent.cgi?art
           | ic...
        
             | justinlkarr wrote:
             | Ice is the old practice of producers (aka rights holders)
             | or box office staff taking tips to make tickets available
             | to resellers. This is illegal and is not common anymore.
             | The era of computerized ticketing has made it much harder
             | to do.
        
         | dboreham wrote:
         | John Mayer did shows here in Montana with that model. People
         | still drove to the venue to get their paper tickets then handed
         | over to their saplees.
        
       | buro9 wrote:
       | The proposed idea is a technical one that doesn't work for the
       | promoters or artists or venues.
       | 
       | The promoters want to know very early whether the venue is the
       | right one for the number attending and whether to upsize, add
       | dates, or even to go the other way to a smaller venue. The time
       | to book a venue is very long... So they need as complete data as
       | they can about sales as early as possible (they would love if 80%
       | of the tickets that will sell can be sold in the first week - as
       | then they can quickly make a decision about whether this is the
       | right venue and if more dates are needed).
       | 
       | The artists want to enable as many fans to get in as possible,
       | including young and poorer fans... Who tend to be more
       | evangelical about an artist and drive their growth more and
       | ultimately are more loyal and spend more over the lifetime of
       | being a fan. They are poorer but more sticky. The artists also
       | want to play to as full a venue as possible as that is the best
       | atmosphere.
       | 
       | The venues want to have surety in their bookings (see the
       | promoter dilemma as to whether to change venue) and for the
       | capacity to be as close to full as possible as they will make
       | more revenue from bar and food sales than from pure ticket sales.
       | 
       | All of these... All of them... Are not solved by the technical
       | solution proposed except when it doesn't matter... When you're
       | absolutely sure you're going to sell out. In which case you also
       | don't need to change anything or invest in anything new because
       | you're going to sell out anyway.
       | 
       | There are solutions that can threaten the current model... But
       | this blog is not one of them.
       | 
       | In fact, the idea that "I have more money and deserve more to
       | have a ticket over someone that doesn't have as much money" is
       | antithetical to the thinking of every artist I've ever worked
       | with.
        
         | timenova wrote:
         | I agree that the idea may not be the best for promoters,
         | artists or venues, however, in my opinion, it's the worst for
         | buyers, specially those who cannot spend a lot of money.
         | 
         | The process of purchasing a ticket will induce a lot of anxiety
         | in the purchase process. They don't know the lowest price they
         | could buy the ticket on, before it gets sold out. They have to
         | pick a price and hope that it is available when the price
         | reaches that value eventually. Many people may decide to go
         | above their limits just to get tickets of popular concerts,
         | decreasing their disposable income unnecessarily.
         | 
         | In theory this process sounds wonderful and exactly like an
         | economics textbook envisions a free-market purchase, but I
         | don't think buyers will enjoy this process. There are lots of
         | other factors to consider in the purchase process apart from
         | economics and API rate-limiting. I don't have a better solution
         | to add for this though.
        
         | mananaysiempre wrote:
         | > [T]he idea that "I have more money and deserve more to have a
         | ticket over someone that doesn't have as much money" is
         | antithetical to the thinking of every artist I've ever worked
         | with.
         | 
         | The problem is, with a limited supply of tickets you're going
         | to draw the line somehow whether you want it or not. Price sets
         | the barrier explicitly. Attempts to avoid using that (e.g. in
         | various social welfare programs all over the world, but also
         | throughout the late Soviet consumer economy) have usually ended
         | up instituting a different, implicit barrier that may seem less
         | outrageous on the surface but at the end of the day is not that
         | much better: networking or bribery skills, amount of time to
         | spend standing in queue or refreshing the website (frequently
         | turned back into price by various enterprising people--I wonder
         | if the US Consulate in Moscow realizes the reduction in visa
         | interview capacity a couple of years ago had as its main effect
         | funnelling applicants' money to a small, untaxed, and
         | technically illegal industry of bot programmers).
         | 
         | If you're trying to extract as much money from each customer as
         | possible (as airlines and other "discriminating monopolies"
         | do), those additional barriers might be intentional. Otherwise
         | they don't seem that much better than the original money one--I
         | _guess_ you could claim the most passionate fans will be able
         | to buy cheap tickets that are sold out in hours (one possible
         | barrier) but you're automatically cutting off people who can't
         | afford the necessary time off work to monitor the sale as well,
         | for example.
         | 
         | I don't like this. But I don't see a workable economic
         | mechanism that can do substantially better, either.
        
           | dqpb wrote:
           | > implicit barrier that may seem less outrageous on the
           | surface but at the end of the day is not that much better
           | 
           | Not better at all, in fact.
        
           | manholio wrote:
           | The model that works is to build relationships with fans and
           | afford them privileged access, and sell everything else at
           | market clearing prices.
           | 
           | Ticketmaster tried too offer that through a "verified fan"
           | route, but it failed under the weight of its own monopolistic
           | ineptitude. Whoever cracks the fan management+ticketing
           | service and offers it to bands will have an incredibly strong
           | moat.
        
             | MichaelZuo wrote:
             | How exactly do fans prove their loyalty?
        
               | Spivak wrote:
               | * Link your Spotify and see that the listening history
               | for the artist goes back a while.
               | 
               | * Require names on tickets and verify them at the door.
               | Then for fan checking see if they've been to shows in the
               | same scene.
        
               | MichaelZuo wrote:
               | And what of fans that don't use a streaming service but
               | buys their music instead?
        
               | adolph wrote:
               | You may fax your proof of purchase and box tops to the
               | customer service line and send check only with a self
               | addressed stamped envelope to Tempe, AZ
        
               | manholio wrote:
               | All kind of models are possible: associate your social ID
               | and prove you've distributed band related content early
               | in their career; associate multiple past purchases - for
               | things like merchandising, fan specials, behind the
               | scenes etc. etc.
               | 
               | The main theme is giving band and labels tools to
               | maintain and curate this relationship with the fanbase,
               | and only then add ticketing on top of it. If you have a
               | certain mass and sign multiple names from the same genre,
               | you can leverage that data to "migrate" say Green Day
               | fans to some new alternative/punk band and offer them
               | discounts, under the assumption this could build strong
               | preferences for that band in the future.
               | 
               | Instead of maximizing present ticket revenue and
               | "burning" a band's current fanbase, you maximize career-
               | wide earnings, fan number and impact. That's a kind of
               | moat that's unbeatable.
        
               | MichaelZuo wrote:
               | Doesn't this discriminate against fans that would not
               | like to share their personal info. or who don't condone
               | to this kind of tracking?
        
               | telotortium wrote:
               | Everything in the world discriminates against _some_
               | class of people. Taylor Swift is optimizing for
               | "verified fans" - i.e., people who will actively share
               | how big of fans they are. It's just good business,
               | because she's developing a lifetime customer base.
               | Someone will need to attend the "final tours" she gives
               | when she's 60, 70, 80. Also, Taylor Swift fandom is one
               | of the most mainstream fandoms I can think of - there's
               | little risk of a severe reputational risk for admitting
               | it.
        
               | MichaelZuo wrote:
               | I don't see how it's any better than discriminating
               | against poor fans though via selling the tickets at
               | market price.
        
         | dqpb wrote:
         | > "I have more money and deserve more to have a ticket over
         | someone that doesn't have as much money"
         | 
         | The "free market" is the closest thing we have to a
         | meritocracy. It's also the only mechanism we have for
         | decentralized decision making.
        
         | [deleted]
        
         | stevage wrote:
         | If you're selling Taylor Swift tickets with a floor of $20 you
         | are definitely selling out any venue.
        
         | [deleted]
        
         | cbsmith wrote:
         | Little known secret: Ticketmaster has an auction system for
         | selling tickets (I believe it has actually built more than
         | one). No one uses it.
        
         | mahkeiro wrote:
         | If you are sure to sell out you want to invest in such a system
         | as this is the best way to extract maximum money from your
         | fans. You still have a chance to sell out in the first days for
         | multiple time the usual price. This system is not used as it
         | will be seen very negatively by fans.
        
           | buro9 wrote:
           | My point on artists is that maximising value extraction isn't
           | their priority.
           | 
           | I worked in the industry for almost a decade, had 2 record
           | labels, and signed a number of bands that became famous (for
           | some definition of that) as well as worked with bands that
           | were famous (for any definition of that)... so I have some
           | experience here even though that experience has aged a bit.
           | 
           | Artists are balancing revenue now, with future growth, with
           | record sales, with drawing in new fans, with taking the tour
           | to as wide a representation of their fanbase as possible...
           | and it really truly isn't as simple as "charge the highest
           | price possible".
           | 
           | Far better models can be seen in sales of things like the
           | Glastonbury Music Festival (real identity required, but
           | administered by See Tickets) and Dice ( https://dice.fm/
           | which allows fan to fan resale ).
           | 
           | Those are better because 1) they limit the ability of
           | scalpers, and 2) the fan-to-fan resale also allows
           | flexibility (less need for thundering herd, as there are
           | always people who cannot attend and now they can safely and
           | respectfully sell to their peers).
           | 
           | Both processes generate a vast amount of data on the sales
           | process, as well as the resale process - which better informs
           | promoters of venue sizing and ticket pricing in the future.
           | Both are good platforms for future evolution of fan-to-fan
           | resale in a way that can enable more of the value to be
           | returned to the artist whilst balancing the other criteria
           | well. What they do is provide promoters with richer data,
           | which allows promoters to make better sizing and venue
           | decisions earlier.
           | 
           | To the separate questions elsewhere in the thread as to how
           | to tackle Ticketmaster, the answer is to not fight them in
           | their space... i.e. to not sell tickets for venues under
           | their exclusive control. Here you see Dice succeeding as they
           | focused on major nightclubs, including Ibiza super clubs...
           | they're selling larger venues than most rock venues, on a
           | daily or weekly basis... outside of Ticketmaster... with more
           | revenue going to the venue, artist and promoters despite the
           | ticket price only having increased a few % points.
           | Ticketmaster control some large venues... but think of
           | festivals, smaller venues, theatres, nightclubs...
           | Ticketmaster really only are present for a small number of
           | super-sized venues, more of the industry exists outside the
           | Ticketmaster venues than in it. Don't go for the red ocean
           | market, go for the blue ocean market (
           | https://www.blueoceanstrategy.com/tools/red-ocean-vs-blue-
           | oc... ).
           | 
           | Data and time create a fairer market... not exclusive venue
           | control or making people pay as high a price as possible.
        
             | dsincl12 wrote:
             | Never heard of the Blue Ocean Strategy before. Super
             | interesting read, thanks for mentioning it.
        
             | andreysolsty wrote:
             | Dice is fantastic. Another thing they do is allow you to
             | join a waiting list for sold out events. People who have
             | bought tickets and want to return them can return them to
             | the waiting list (and people on the waiting list will get a
             | notification offering them a few hours to purchase the
             | newly returned ticket). If someone on the list buys it they
             | are refunded.
        
               | BeniBoy wrote:
               | Counterpoint: Dice is terrible. Sure it makes sense for
               | bigger artist that will sold out, but for most it is not
               | necessary and it forces you :
               | 
               | - To have a smartphone
               | 
               | - To give out your phone number
               | 
               | - To create an account
               | 
               | The worst? You can't even resale the ticket if the event
               | is not sold out! Usually if I'm unable to attend a
               | concert, I'll put my ticket up for sale for half the
               | price, but with Dice, you just wasted money on empty
               | seats. Great.
        
             | maxerickson wrote:
             | Ticketmaster is in the news because they had trouble with
             | sales for the upcoming Taylor Swift tour. I have trouble
             | believing that they are worried about changing venues (I
             | expect they chose the largest available in every case) or
             | selling the shows out.
             | 
             | And the number of shows is a decision that is taking into
             | account a lot of factors that aren't reaching as many fans
             | as possible. That's fine, no artist owes their fans
             | anything, but the goal rather obviously isn't to maximize
             | attendance opportunities.
        
               | buro9 wrote:
               | OK, so let's take that one specific example.
               | 
               | Taylor Swift is huge, a megastar. She has a fanbase in
               | the millions. She doesn't want to tour endlessly as it is
               | exhausting and impedes upon a family life and seeing
               | friends. So... a big tour, but big venues.
               | 
               | Her fanbase is all ages, but probably veers towards teens
               | and those in their twenties as she went mega-big after
               | 1989 was released (in 2014).
               | 
               | The vast majority of the fanbase are younger, and
               | therefore poorer (wealth is accumulated over time, and
               | the cost of living crisis hits the young
               | disproportionately).
               | 
               | Because the fanbase is so large, the minority with wealth
               | could afford to purchase every ticket under a dutch
               | auction and the vast majority of her fanbase wouldn't
               | stand a chance.
               | 
               | Taylor Swift is famed for doing things for her fans,
               | getting them in to gigs, visiting in hospital, sending
               | messages to console... and basically having empathy and
               | caring for them.
               | 
               | Can you even imagine the headlines on every front page as
               | teens and twenty-year olds are priced out by older people
               | who are wealthier... and the immense damage that would
               | cause to a brand curated and sculpted over the past
               | decade or more.
               | 
               | In this specific instance... Taylor Swift would consider
               | the proposal in the article to be the worst possible
               | thing she could do. It would still be flat-out rejected.
        
           | coffeefirst wrote:
           | Except extracting as many dollars as possible _isn't_ the
           | goal. Many bands try to keep their tickets affordable.
           | 
           | The solution is to break up Ticketmaster. The companies they
           | gobbled up handled this fine. Imperfectly, sometimes shoes
           | sold out in minutes, but the prices and the fees were fair,
           | and Will Call can wipe out the scalpers.
        
             | alar44 wrote:
        
             | kjrose wrote:
             | How does will call wipe out scalpers? I have never heard
             | that before. I would love to hear the explanation.
        
               | [deleted]
        
               | sdenton4 wrote:
               | Check IDs before handing over the tickets. Cuts resale to
               | in line at the event, which tanks the efficiency of the
               | resale market.
        
               | pyrolistical wrote:
               | There will still be scalpers but now they will be
               | committing fraud. At the end of the day there will still
               | be a large number of real fans who will be pissed will
               | call rejected their ticket.
               | 
               | The fans will need the smarten up and learn the rules.
               | That would take time
        
         | kjrose wrote:
         | For music or artist based shows I agree.
         | 
         | However this could work really well for sporting events. The
         | Leafs usually sell out all of their tickets and a good number
         | to scalpers, having at least a more legit way to buy tickets
         | for a game would be helpful
        
         | silvestrov wrote:
         | There is the old trope that McDonalds is primarily a real
         | estate business.
         | 
         | In the same line of thinking, you could say Ticketmaster is a
         | "scape goat" business so the artists and venues can get max
         | profit while still coming of as innocent angels.
         | 
         | It is now all Ticketmaster's fault. Venues and artists are
         | innocent.
         | 
         | This would explain why you can't fix it: where would the
         | scapegoating go? When you have larger demand than supply, then
         | prices will always be high. And when venues + artists prefer
         | full venues, then demand must be higher than supply.
        
           | dan-robertson wrote:
           | Seems like it's not so simple to say that ticketmaster is
           | getting artists/venues max profits. If you look at how much
           | money could be made by scalping (before it became harder),
           | that was money people would have potentially paid to the
           | artist/venue instead.
        
           | JKCalhoun wrote:
           | I guess I see the entertainment industry in two tiers. There
           | are the mega-stars like Taylor Swift, etc. that occupy one
           | tier, and then the majority off smaller artists, up and
           | coming artists that represent the lower, if you like, strata.
           | 
           | Perhaps you are describing, and perhaps the author are
           | tackling the upper strata. For myself, I swore off big venues
           | decades ago. If I am unable to set my beer behind the monitor
           | speaker, I'm not going.
           | 
           | I wonder if the lower strata could use a kind of "artists
           | coop" to manage ticket sales. All smaller venues (bars and
           | the like) could participate, all smaller artists could as
           | well.
           | 
           | I think more artists would handle selling their own tickets
           | if it was easy to do. In that way the artists are served (of
           | course) and presumably they will do what is best for their
           | fanbase.
           | 
           | Connecting artists and venue owners with a web portal,
           | allowing ticket sales to fans via the same site shouldn't be
           | heavy lifting for a lot of the readers on HN.
        
             | swores wrote:
             | > _Connecting artists and venue owners with a web portal,
             | allowing ticket sales to fans via the same site shouldn 't
             | be heavy lifting for a lot of the readers on HN._
             | 
             | The tricky part isn't making the website, it's persuading
             | enough people on both sides of the equation that your
             | business is a better option compared to alternatives.
             | 
             | And despite the situation with Ticketmaster it's not like
             | they're literally the only tool available in a market
             | waiting for a second option - there's already lots of much
             | smaller ticket-selling options that you'd be competing
             | with, ranging from single person PHP websites you can host
             | yourself to companies with significant traction in their
             | niches that are like Ticketmaster just much, much smaller.
             | 
             | That's not to say that an idea like yours couldn't succeed,
             | but the fact that lots of people could do the coding
             | doesn't make it a likely, or easy, business to make
             | successful.
        
               | makestuff wrote:
               | Yeah pretty much any big tech company could spin up a
               | team to launch a ticket purchasing website in a year or
               | so that could handle the traffic.
               | 
               | For example, Amazon always loves adding benefits to
               | prime, if they thought they could break into the ticket
               | market they would do it in a heartbeat. Same with Spotify
               | or Apple. If these massive corps cannot break into the
               | market then why would some startup be able to?
        
           | lotu wrote:
           | Ticketmaster if I recall correctly has even stated this in
           | its shareholder meetings. Artists can even get a share of
           | Ticketmaster's fees.
        
           | CPLX wrote:
           | But it is all their fault. They're an obviously illegal
           | monopoly that was allowed to thrive during our multi-decade
           | experiment with not enforcing antitrust laws.
           | 
           | If artists literally ALL wanted to hire a scapegoat that rips
           | off fans then sure. But many don't. The fact that there's no
           | other alternative is WHY it works.
           | 
           | Also there's no such thing as "venues and artists" since they
           | own the venues too. Which is another part of the overall
           | problem.
        
           | Spooky23 wrote:
           | The problem with Ticketmaster is the same as any
           | consolidation play. If you let a middleman control the
           | wholesale and retail side of the transaction, you're gonna
           | get a bad deal.
           | 
           | The solution is really simple, but the government no longer
           | has the regulatory ability to do anything. You segment the
           | distributor function from the retail, and end up with a bunch
           | of retailers running volume driven low margin sales channels.
           | 
           | Ticketmaster brilliantly positioned itself as distributor,
           | retailer and supplier for resale. So they have an exclusive
           | on a venue, get a fee for the sale, get a seller commission
           | for the resale, and a buyers fee for the resale. They "own"
           | the customer and the venue.
        
             | sixo wrote:
             | They also, iirc, act a bit like a specialized bank for
             | venues, by paying for contracts up front (and I think I
             | read also loaning money directly?) in exchange for the fee
             | upside in sales and resales later. Venues want as much
             | revenue as they gdt to come in as close to on sale date as
             | possible. So it's "every sufficiently large company sells
             | financial services", too.
        
             | zwkrt wrote:
             | In a transaction of the style of musical performances, I
             | think it's inevitable that an entity like Ticketmaster
             | would begin to exist. The issue is that we have a many to
             | many to many relationship between fans, artists, and
             | venues.
             | 
             | In database design when you have such a pattern it is
             | common that you'll have a new table to maintain the complex
             | relationship. It doesn't make sense for venues to sell
             | tickets because each artist has their own tour through many
             | venues. Selling tickets for a tour becomes a hassle as many
             | venues would have to coordinate. To complicate things,
             | opening acts often switch during the course of a tour.
             | Conversely, it doesn't make sense for artists to sell
             | tickets because the process of coming up with the ticket
             | price and negotiating with the venue and handling
             | transactions and returns , etc. is not their core
             | competency.
             | 
             | This is why promoters like Live Nation exist--to bridge
             | this gap and take on the capital risk necessary to put on a
             | large tour. They aren't necessary but their value to venues
             | and artists (the business owners) is palpable. For Taylor
             | Swift to go on a world tour, an amount of centralized
             | coordination makes it much easier and much less likely to
             | end in financial ruin.
        
       | dsalzman wrote:
       | Make it a lottery. A toy example, instead of selling 10,000
       | tickets that sell for $1000 sell 500k "lottery" tickets for $20
       | each. A lucky 10,000 get to the concert. The artist/venue makes
       | the same amount. Everyone gets a chance at seeing the artist for
       | a reasonable price. Would work for very popular artists with
       | young fans like T Swift. Lottery tickets would need to be non-
       | transferable as well.
        
         | [deleted]
        
         | function_seven wrote:
         | Non-starter. Fans would hate the uncertainty, and most of them
         | would end up spending $20 and getting nothing for it.
         | 
         | Also you have to navigate gambling laws in all the different
         | states, provinces, and countries you're selling in.
         | 
         | And you also lose the freedom to bring a different friend if
         | your original date drops out.
         | 
         | The Dutch Auction idea in the article is actually really simple
         | and cuts out the complexity that comes with transfer limits,
         | ID-must-match rules, etc.
        
       | romdev wrote:
       | John Oliver had an expose of all the things I already knew about
       | how corrupt Ticketmaster is.
       | https://www.youtube.com/watch?v=-_Y7uqqEFnY
        
       | justinlkarr wrote:
       | Northwestern University uses (or used) a version of this for
       | their basketball team, which they call "Purple Pricing".
       | 
       | https://blogs.cornell.edu/info2040/2022/10/25/sports-ticket-...
       | https://hbr.org/2013/05/any-business-trying-to-sell
        
       | mrozbarry wrote:
       | This isn't to be argumentative, but life isn't fair. This article
       | discusses how to make buying a Taylor Swift ticket fair,
       | meanwhile there are much larger social issues, like homelessness.
       | I'm not a concert guy, and all the more power to those who do
       | enjoy it, but it's absolutely a luxury to those that want to go.
        
         | alexchamberlain wrote:
         | Is the algorithm proposed fair in that sense? I'd argue it
         | isn't anyway.
        
       | Spooky23 wrote:
       | I have an idea. Hire a bunch of lobbyists to advocate legalizing
       | scalping, then allow the biggest monopolist ticketing middleman
       | to setup the largest resale marketplace.
       | 
       | Then, we act surprised when "hackers" somehow are able to defeat
       | the anti-bot systems and resell (with another set of fees) bulk
       | quantities of tickets on said resale marketplace.
        
       | mosseater wrote:
       | An NFT solution to ticketing seems like it would be trivial given
       | how NFTs operate already. One ticket could be verifiably owned by
       | one person. If that person wanted to resell the ticket, there
       | could be restrictions on how much they could sell it for. If bots
       | can't make a profit there's no use in buying out all the tickets.
       | It would also decentralize the space. Sure you need a marketplace
       | for the NFT tickets, but that could easily be a open source
       | software suite that the venues themselves host. Gas price will
       | probably be a lot less than ticketmaster fees.
       | 
       | Honestly it seems like the biggest problems here are that
       | Ticketmaster in particular has a huge sway in the current venue
       | and artist market, having contracts that require an artist or
       | venue to exclusively use their ticketing system.
        
         | bigjump wrote:
         | This is what https://www.get-protocol.io/ are doing.
         | 
         | " Tickets become tradable digital collectibles (NFTs), with a
         | variety of awesome possibilities for fans & event organizers."
        
         | tigrezno wrote:
         | NFT are the solution to this problem.
        
         | pclmulqdq wrote:
         | NFTs actually can't algorithmically restrict transfer prices or
         | algorithmically take fees. The fee taking that happens today is
         | done by an exchange as a courtesy to the "artist."
         | 
         | This is one of the limitations of the NFT model.
        
           | thrtythreeforty wrote:
           | I was under the impression you can run arbitrary code in the
           | blockchain?
        
             | pclmulqdq wrote:
             | Not even close. You are very much limited by what each
             | chain's VM allows. The bitcoin VM is extremely limited. The
             | EVM lifts most of those limitations. All of the VMs have a
             | fee you pay based on the complexity of your program, too.
             | 
             | You are also limited in what cryptography you can do
             | because all of the data involved has to be public - so no
             | private keys can be involved in that computation if you
             | want them to stay private.
             | 
             | Take the example of transaction fees on sale of NFTs. A lot
             | of NFT creators wanted to be able to take X% of the sale
             | price of NFTs as an ongoing royalty. Here's how that might
             | have to happen if you did it algorithmically:
             | 
             | 1. You initiate an NFT transfer that requires the creator's
             | signature to be processed
             | 
             | 2. You pay a fee to the creator and provide proof of the
             | purchase price to get them to sign the transaction
             | 
             | 3. The creator signs your transaction, completing it
             | 
             | This step involves trusting the creator to do (3). You
             | cannot automatically do (3) without the creator's private
             | key being on-chain.
             | 
             | Note that if it were a flat fee, there would be no problem
             | - the transfer transaction would be able to auto-deduct the
             | ETH from your account and move it to the creator's, but the
             | variable fee creates problems.
        
       | poopsmithe wrote:
       | YES! I love this concept. The big clock featured in the post was
       | described in a Tom Scott video[1] earlier this year. It's the
       | Royal FloraHolland's flower auction in Aalsmeer. Fascinating to
       | see how it worked then and how it works now. Same concept, just
       | computerized and accessible remotely by bidders.
       | 
       | [1] https://www.youtube.com/watch?v=uAdmzyKagvE
        
       | littleJeck wrote:
       | I could imagine the Dutch auction would only change the strategy
       | of scalpers, besides being a massive money grab for artists,
       | venues and ticket master.
       | 
       | The strategy for scalpers now appears to be get in as fast as
       | possible and buy as many tickets as they can. But if we can
       | assume the event will sellout completely and there is sufficient
       | demand (e.g. Taylor Swift which I think I read would need to do
       | 900 concerts to meet the initial demand) then scalpers could
       | still win. Scalpers would just need to set a desired amount of
       | tickets to buy and attempt to buy them at the last possible
       | moment. They will get the tickets for the cheapest price for the
       | event and could then sell them for a markup.
       | 
       | I think people would buy the scalpers tickets since they may have
       | been waiting to see how low the prices can get, or they are able
       | to obsess over remaining ticket numbers like a bot could and just
       | missed out.
       | 
       | The only benefit I could see to the Dutch auction is it increases
       | risk to scalpers by making them pay larger prices and get the
       | last pick of seats, but only for events with allocated seats. So
       | maybe instead of half the tickets for an event being scalped,
       | they may only have the risk appetite for 10% of the tickets.
        
         | fredophile wrote:
         | Some artists and promoters are already doing a money grab and
         | hiding behind scalpers to do it. For big shows, a portion of
         | the tickets may be removed from retail sales entirely and go
         | straight to websites that are used for scalping tickets [0].
         | This let's artists be seen as offering tickets at reasonable
         | rates while getting closer to market rates.
         | 
         | [0] https://www.google.com/amp/s/www.vox.com/platform/amp/the-
         | go...
        
       | iopq wrote:
       | Or, you release tickets for auction starting from 6 months prior
       | slowly. Whatever the auction price is, that's what they are sold
       | for. Start with the best seats, then the auction results might
       | inform buyers how to bid on the next seat.
        
       | throwawaaarrgh wrote:
       | Burning Man-style ticket sale systems require a lot of extra
       | workflow features, like a waiting room, ticket claim, raffle
       | selection, identity confirmation. They have multiple phases of
       | sales where the price increases. They have hardship tickets, if
       | you can prove you simply can't afford the normal price.
       | 
       | Resale for above original value is not allowed, and if you're
       | reported the ticket may be forfeit and original seller banned.
       | You can transfer a ticket to another person using their ticket
       | management system, and I imagine you could also "sell back" your
       | ticket to be given away at the box office as hardship tickets.
       | 
       | Most people do buy as many as they can and sell or give away the
       | extras to their friends or people on forums looking for tickets.
       | While controversial, it is nice to go to an event with your
       | friends, and it does feel like you're helping strangers who are
       | interested enough that they hunt around on forums for a ticket.
        
       | woeirua wrote:
       | Or you could just be like Garth Brooks and keep adding shows
       | until they no longer sell out. Boom, problem solved.
        
         | duped wrote:
         | There are not enough stadiums in America for Taylor Swift to do
         | this
        
           | [deleted]
        
         | musicale wrote:
         | Adding shows seems like the best response if it's possible.
         | 
         | More work for the artist though, and for the mega-popular
         | (Taylor Swift atm) it might be hard to schedule enough shows.
        
           | mertd wrote:
           | It can be less work if they have to travel to less towns in
           | total.
        
           | judge2020 wrote:
           | They/she added more shows after the initial announcement[0],
           | but they're still in insanely high demand.
           | 
           | 0: 11/1 email with 27 show dates, then 11/4 additional 8 show
           | dates, then 11/11 an additional 17 dates.
        
       | Apreche wrote:
       | Talk about fair distribution all you want, it doesn't matter.
       | People who buy tickets are not the customers of Ticketmaster.
       | Ticketmaster does not have any incentive to implement any system
       | that better serves the people who actually attend ticketed
       | events.
       | 
       | The customers for Ticketmaster are venues. That's the only party
       | that Ticketmaster cares to please. Of course Ticketmaster wields
       | their monopoly power such that venues have little choice but to
       | go with them. But even if they did not do that, Ticketmaster
       | serves the interests of the venues very very well.
       | 
       | If you want to defeat Ticketmaster with a market solution, you
       | can't do it by creating a Ticketmaster competitor. No matter how
       | good it is, venues can't be swayed. You will have no customers.
       | The only market solution is to own venues. As a venue owner you
       | could refuse to renew with Ticketmaster and use any other system
       | you wanted.
       | 
       | Of course, if you do that, good luck booking anyone to perform in
       | your venue. It better be a big famous one that they can't ignore.
        
       | ljw1004 wrote:
       | In what sense is this solution "fair"? What definition of
       | fairness is being used?
       | 
       | This seems like a solution where rich people get the good things
       | and poor people don't. I wouldn't call that fair.
       | 
       | In a democracy, everyone has an equal weight, an equal say, in
       | the governance of the country. We often call that fair, or
       | sometimes just.
       | 
       | In capitalism, every dollar has an equal weight, an equal say in
       | what gets produced or built or done.
        
         | dojomouse wrote:
         | In the case of transferable concert tickets that's already the
         | 'solution'. Even if someone 'poor' is lucky enough to beat the
         | odds and buy a ticket under the current system at the initial
         | offer price, they still have the same opportunity cost to weigh
         | up - it's just they're deciding whether to resell their ticket
         | and realise a gain, or go to the concert and forfeit the gain.
         | 
         | This proposed system would be fairer in that it would at least
         | deliver whatever the maximum amount a rich person is prepared
         | to pay to the artist, rather that some scalper intermediary.
         | Those at the lower end of the willingness-to-pay spectrum are
         | no worse off, except to the extent that you think they're
         | disproportionately lucky, disproportionality motivated (which I
         | accept is possible), or are themselves looking-to/willing-to
         | scalp tickets.
         | 
         | It also seems however that it'd be pretty trivial to just
         | prohibit resale of tickets and require ID at the venue.
         | Artists/promoters might make less money but it'd preserve
         | equality of access and largely eliminate scalping.
        
       | wskish wrote:
       | Here is the system that the Grateful Dead developed to bypass
       | Ticketmaster BITD:
       | 
       | https://www.cs.cmu.edu/~mleone/gdead/faq/tickets.html
        
       | Waterluvian wrote:
       | It's a trivially solvable problem to engineers because it's not
       | an engineering problem. They want all the hype and rush. It's
       | become a piece of culture to "wait in line."
       | 
       | I once had a company put me in an async queue for months to wait
       | for my brand new gadget. I wish Sony had done the same with the
       | PS5.
        
         | judge2020 wrote:
         | > I once had a company put me in an async queue for months to
         | wait for my brand new gadget. I wish Sony had done the same
         | with the PS5.
         | 
         | https://www.theverge.com/2022/4/21/23020823/sony-direct-play...
        
           | Waterluvian wrote:
           | 90 mins after the article was posted it was updated with
           | "sold out". Was this not a real long-term queue?
        
         | conductr wrote:
         | The psychology of people waiting and wanting to give relatively
         | large sums of money away is absolutely what's being optimized.
         | The proposal from author is quite the opposite as it encourages
         | waiting or leaves you wondering if you overpaid as a consumer.
         | Probably not the psychology that's best for business.
        
       | punnerud wrote:
       | In Norway you are not allowed to sell the tickets to a higher
       | price, than the listing price.
       | 
       | You can actually go through with the buying from a third party,
       | and demand a refund for the additional price afterward (and keep
       | the ticket)
        
       | ripe wrote:
       | Yes, I think this kind of price-reducing auction would work and
       | would be fair and not user hostile.
       | 
       | For Taylor Swift's tickets, I wonder what the starting price
       | would need to be at a typical Northeast venue like Gillette
       | Stadium...
        
       | e-clinton wrote:
       | This model assumes that everyone is just sitting around paying
       | attention to your concern tickets. If I see your prices are
       | $2000/seat, I will just find somewhere else go spend my $300.
        
       | bo1024 wrote:
       | I think this is great if your goal is to clear the market at a
       | competitive price. But a lot of artists want to sell tickets
       | below market price. That makes the problem a lot harder. The
       | obvious thing to do is have a lottery, but it's hard to stop
       | people from using multiple identities (especially scalpers).
        
         | Ferret7446 wrote:
         | > But a lot of artists want to sell tickets below market price
         | 
         | And I want to experience being a dragon, unicorn, billionaire,
         | etc. We can want impossible things, but ignore reality at our
         | own peril.
         | 
         | You can't "beat" the market, you just force the market
         | underground (black market, scalpers). The market ALWAYS pays
         | what it can afford. If demand is greater than supply, and
         | someone is willing to pay more for it, refer to Economics 101.
        
           | blowski wrote:
           | The market! The market! The market! This invisible beast
           | which controls everything for all eternity!
           | 
           | There are always ways of influencing the market. Taxes,
           | subsidies, regulations, advertising. It requires imagination,
           | but let's not feel ourselves enslaved completely to the
           | invisible hand of the new leviathan.
        
             | listenallyall wrote:
             | "Influencing the market" is just a way of introducing
             | unenforcable or ineffective rules, or unintended
             | consequences. You want to tax resale of tickets at above
             | face value at 100%? Sure. Now enforce it. I mean, it's been
             | illegal in many states for a while now anyway.
             | 
             | Back in the day, before the web, anyone who wanted a ticket
             | at face value could get one. You just had to wait in line.
             | For a long time. And back then, people said that system was
             | unfair, because wealthy people could afford to take the day
             | off of work, while poor people couldn't. Or wealthy people
             | could simply pay other people to wait in line for them. And
             | the wealthy people realized, hey, the limit is 8 tickets
             | but I'm going with just a group of 4... I can buy all 8 and
             | sell 4 to people at the end of the line for a profit. And
             | they did! And so waiting in line became fruitless, unless
             | you were really, really, really early, because all the
             | wealthy people (scalpers) would buy the max number of
             | tickets and the show would sell out fast. Now we have the
             | internet and nobody has to wait on a line, everyone can log
             | in at the exact moment, but people once again say this is
             | unfair.
             | 
             | The idea that you can somehow ignore, heavily influence, or
             | override the free market in concert tickets is nonsensical.
        
               | blowski wrote:
               | So we can influence the market for travel, healthcare,
               | education, military, environment, food, children's toys,
               | etc. But not for tickets to watch Taylor Swift?
        
               | MichaelZuo wrote:
               | Seems a bit of a weird question.
               | 
               | Considering how often it's discussed on HN what the
               | unintended effects are of regulations on healthcare,
               | education, and environment.
               | 
               | I would wager more than 5% of posts that got more than
               | 100 comments in the last 5 years have discussions about
               | that topic.
        
               | blowski wrote:
               | There are three categories of criticism being mixed up
               | here.
               | 
               | 1. You cannot influence the market, it will always revert
               | to form.
               | 
               | 2. You can influence the market, but in doing so, you
               | will cause too many damaging side-effects.
               | 
               | 3. You should not influence the market, because it's
               | morally wrong to do so.
               | 
               | The first comment was very much in category 1, but now it
               | sounds like category 2.
               | 
               | The problem with category 2 arguments is that they
               | pretend any solution must be perfect with no side-effects
               | or we shouldn't do it. Clearly, it's a trade-off - even
               | if there are negatives, if they are outweighed by the
               | positives, it's worth doing.
               | 
               | Thus, if it's possible some mixture of regulation, tax
               | and subsidy can prevent monopolistic behaviour, it's
               | worth at least discussing.
        
               | MichaelZuo wrote:
               | Well 2. is only a subset of 1., on a long enough time
               | scale, as all human 'influences' will vanish too.
               | 
               | Animals, even plants, experience market forces to some
               | extent. So I would say 'You cannot influence the market
               | over millions of years, it will always revert to form.'
        
               | blowski wrote:
               | Within the next million years, I predict we'll find
               | different solutions. For now, I'll focus on the next few
               | decades.
        
               | MichaelZuo wrote:
               | The point is that there always exists a market clearing
               | price for everything, which can be modified temporarily
               | via human action, but not forever.
        
               | blowski wrote:
               | If we can improve things during that timeframe, great
               | (perhaps phrased better as "In the long run, we're all
               | dead anyway"). And by the time we reach the end of that
               | timeframe, the context will be different.
        
               | Symbiote wrote:
               | In Denmark it's illegal to resell tickets above the
               | original price.
               | 
               | Occasionally you see "crate of beer 1000DKK comes with
               | free Taylor Swift ticket" but it's rare.
        
         | deanc wrote:
         | It's really easy in many European countries to prevent identity
         | abuse. In Finland there is a system called "strong
         | authentication" where you log in with your bank. It's directly
         | tied to your social security number and banks do a very strict
         | job of identifying you in person before you open your accounts.
         | It works and I've not heard of anyone gaming this system. It's
         | used by the banks themselves, the government, tax office etc.
         | 
         | This is the solution. Strong authentication into a lottery.
        
           | dqpb wrote:
           | Lotteries aren't fair.
        
             | Kbelicius wrote:
             | How come?
        
             | [deleted]
        
           | dwild wrote:
           | I don't understands how that system would help, can't you
           | have multiple bank accounts? Except if all the banks transfer
           | some strong common identifier like the social security number
           | (and that sound pretty dangerous to share). Open 5 accounts
           | in 5 different banks (I'm pretty sure you could even do it
           | all at the same bank), and there you go... you will exist,
           | but Ticketmaster would have no idea whether you are 5
           | different deanc or all the same one.
        
             | deanc wrote:
             | Your identity is tied to your account at the bank, not your
             | bank accounts. It's simply a way to identify you are an
             | individual. It is tied to your SSN, and there are very very
             | strict requirements to gain access to this provider (it is
             | run by a branch of government).
        
           | cortesoft wrote:
           | > This is the solution. Strong authentication into a lottery.
           | 
           | I really don't like using a lottery, because it assumes that
           | everyone who wants to go to a particular concert has the same
           | level of desire to go.
           | 
           | A lot of people might just kind of want to go, while for
           | others going is the most important thing in the world. With a
           | lottery system, each of those people have an equal chance of
           | getting to go. It seems unfair to me.
           | 
           | I want a system that allocates tickets to the people who want
           | to go the most. I know an auction type system isn't
           | completely fair, since some people have more money than
           | others, but it least it has some semblance of trying to
           | distribute tickets to people who want to go the most.
        
             | tromp wrote:
             | > I want a system that allocates tickets to the people who
             | want to go the most.
             | 
             | I can't think of a better way to measure desire than
             | willingness to spend a long time waiting in line. So
             | perhaps sell the more expensive lottery tickets online
             | (with some proof of unique identity), and cheaper lottery
             | tickets at the venue itself (still tied to identity) on a
             | single day a few months in advance.
        
               | maerF0x0 wrote:
               | > who want to go the most.
               | 
               | And then there is the difference in means. I barely want
               | to go to tswift, but it's no skin off my budget. My
               | friends 15yo daughter is dying to go but its like 100% of
               | her income for the next 3 months.
        
               | cortesoft wrote:
               | > I can't think of a better way to measure desire than
               | willingness to spend a long time waiting in line.
               | 
               | Doesn't this have the same problem as using money? Some
               | people have a lot less time to wait in line, just like
               | some people have a lot less money to spend on tickets
        
         | maerF0x0 wrote:
         | > But a lot of artists want to sell tickets below market price.
         | 
         | IMO artists should stop trying to sell below market and instead
         | move the market by increasing supply. TSwift tickets wouldnt
         | sell for $1000 a ticket if she played 3 nights... It's also a
         | contradictory goal to what basically everyone else in the
         | industry cares about (eg vendors, venues, crews etc).
         | 
         | Perhaps for super super stars like tswift she'd literally end
         | up playing 24/7/365 ... But for a lot of artists additional
         | nights would really change the curve.
         | 
         | I'm curious how alternatives might effect elasticity, something
         | like simulcast at theaters for less than live in person?
        
         | jzwinck wrote:
         | Sell a fraction of tickets at higher prices (perhaps via
         | auction) ahead of time, and sell the rest at the door. Scalpers
         | cannot pretend to be multiple people if they have to enter the
         | venue and pay.
         | 
         | The known-price door tickets set a bound on the value of
         | advance tickets, with the latter having a premium for certainty
         | of getting in. Younger people with less money will place less
         | value on certainty (they can wait in line at another concert).
         | 
         | Scalpers can still buy advance tickets and scalp them, but they
         | have reduced pricing power because buyers might rather take a
         | chance at $50 door tickets than pay $500 to a scalper. And
         | there may be less bad press about tickets costing $500 if most
         | of them are sold at the door for $50.
        
           | pas wrote:
           | sell low price vouchers, require ID for them, make them
           | refundable in 90+ days or in person with ID only
           | 
           | set up a membership/trust/reputation system for fans and/or
           | frequent venue goers (eg. locals), and if they actually show
           | up to gigs, then you can reduce the refund wait time for
           | them, etc.
        
         | danuker wrote:
         | These are called Sybil attacks.
        
         | matwood wrote:
         | > But a lot of artists want to sell tickets below market price.
         | 
         | Then do more shows. If the goal is to satisfy as many fans as
         | possible across all economic spectrums, then more shows is the
         | only answer.
        
         | judahmeek wrote:
         | If they want to sell tickets below market price, there's not a
         | good solution.
         | 
         | If they want some people to be able to buy tickets below market
         | price, then they could use some form of scholarships.
        
       | iambateman wrote:
       | I like the idea of demand pricing as a way of increasing access
       | but I don't think it would work in practice.
       | 
       | Too many people would be thrown off by the falling price, and
       | want to wait. Friends who bought earlier than other friends feel
       | like suckers for spending more money on the same thing.
       | 
       | Lastly, what we call scalping _is_ a service to the ticket-buyer.
       | The scalper is providing a market for the ticket at a price which
       | is agreeable to the buyer. Dads love to complain about the "high"
       | price of a ticket while they stand in line for $15 popcorn.
       | Meanwhile, scalpers effectively do the work described in the
       | article by adjusting prices very quickly based on actual demand.
       | As an event gets close to starting, unsold inventory drops
       | precipitously in price until it's sold.
       | 
       | The reason scalping has a bad reputation is that most
       | entertainment pricing is set well below the actual value of the
       | event.
        
       | onion2k wrote:
       | Starting at $2000 for a concert where demand outstrips supply to
       | the point where people will pay $4000 to a ticket scalper just
       | means the minimum ticket price will be $2000. All the tickets
       | will still sell out immediately. The audience will be entirely
       | made up of wealthy people, or people who are willing to break the
       | bank to see Taylor sing.
       | 
       | The only "fair" way to sell a good that's in high demand and you
       | want everyone to have the same level of access regardless of
       | their background is a lottery. Tell people what the price is, let
       | them apply for tickets, and sell to people at random. Scalping
       | can be stopped by not allowing people to transfer tickets to
       | other people - people should get a refund in full and their
       | tickets get resold to other people in the lottery if someone
       | changes their mind.
       | 
       | The obvious problem with the lottery approach is that it entirely
       | fails to maximize profit.
       | 
       | Personally, if I was selling tickets, I'd just not sell them
       | "fairly". Accept that tickets are a luxury item, like Ferraris.
        
         | lifeisstillgood wrote:
         | Just want to support this - and agree that the implication is
         | the people who don't implement this are the artists (or
         | managers) themselves who, y'know, like money.
        
         | aetherson wrote:
         | I think the point is, you start at the maximum price you think
         | any significant number of people will pay. If that's $4000,
         | it's $4000.
        
           | detaro wrote:
           | If you want your marketing signaling to be "this artist is
           | for rich people, normal people have no chance to see them
           | anyways", sure. Many probably don't want to do that - indeed
           | the strength of the lottery system is that it does signal the
           | opposite.
        
             | MichaelZuo wrote:
             | No, they would also advertise the descending nature of it,
             | so if they book a big enough venue, there won't be that
             | much demand at $4000 to sell it out. So the price will
             | descend down to more affordable levels.
             | 
             | Of course if the biggest venue isn't big enough to do that,
             | then that's more of a problem of the local facilities, or
             | the artist's decision to play in an area with inadequately
             | sized venues.
        
               | detaro wrote:
               | I don't think "avoid playing in places without mega-
               | venues, because otherwise our self-choosen pricing policy
               | will make us look bad" is a particularly clever approach.
               | (not to mention that doing so will drive up the price for
               | events in places with such mega-venues)
        
               | MichaelZuo wrote:
               | People accept the logic that smaller facilities = more
               | restricted capacity = higher prices in pretty much every
               | other context.
               | 
               | A Ferrari dealership has to turn away the vast majority
               | of folks who want to test drive their cars, a B&B, or
               | boutique hotel has to turn away customers, or price rooms
               | very highly, on a busy weekend, etc.
               | 
               | They are still very popular regardless.
        
             | JKCalhoun wrote:
             | You can of course have a hybrid -- where say 75% of the
             | tickets are lottery, the rest are insanely high priced.
        
         | dan-robertson wrote:
         | This doesn't sound very true to me. My guess is that there are
         | a much smaller number of people willing to pay $4k to a scalper
         | for tickets and the price reflects the small supply of scalper
         | tickets.
        
         | itake wrote:
         | How is that any different from the current system? The current
         | system randomly selects web browsers to add tickets into the
         | cart.
         | 
         | The scalpers have more lottery tickets than everyone else (via
         | bots).
         | 
         | I guess the main difference is to not allow ticket transfers?
        
         | sopooneo wrote:
         | The _perception_ of profit maximizing ticket sales at each
         | event will hurt total profit of the artist over their career.
        
         | Morgawr wrote:
         | This is actually how they do it in Japan. They love the lottery
         | system and as a customer it's honestly a huge pain in the ass
         | but once you see the kind of scalping and sleazy tactics that
         | go on overseas you kinda start to appreciate it.
         | 
         | There's a few ways it is implemented and not all artists/venues
         | do all of these but things I've seen are:
         | 
         | - Priority purchase for "fan club" registered members. Most
         | artists have a LINE group fan club with a yearly subscription
         | (like $50 or whatever), then if you are in this group, you get
         | priority access to that artist's events. This means if you're a
         | "real" fan you get to access tickets before everyone else.
         | 
         | - Lottery system based on price "bands". I've seen a few
         | artists let the fans decide how much they want to pay based on
         | tiers. Months before the event, the artist will send out a
         | survey with price ranges you can choose (only one) like: $10,
         | $15, $30, $50, $90 and then seats will be allocated based on a
         | priority level as a self-chosen value. So if there's 5 people
         | who chose $90, 10 people who chose $50, 30 people who chose
         | $30, 200 people who chose $15, and 1000 people who chose $10,
         | if the venue can only host 250 people then 5 + 10 + 30 + 200 (=
         | 245) people will get in at their price, and only 5 remaining
         | people will get in at $10 price point.
         | 
         | - Totally random lottery based on "waves". X people will apply
         | to wave 1, and out of those X people let's say only 70% will
         | get chosen. Then the artist/venue decides on a more
         | approachable size and might host a second wave, another X
         | people will apply to that second wave (including the previously
         | excluded 30%) and another 70% will get chosen, then repeat
         | until the venue is full or the artist decides they cannot host
         | more events. Those who don't get chosen have to suck it up and
         | try again another time.
         | 
         | It's far from perfect, and as I said it can be extremely
         | frustrating, but it has its good sides too.
        
         | matwood wrote:
         | > Personally, if I was selling tickets, I'd just not sell them
         | "fairly". Accept that tickets are a luxury item, like Ferraris.
         | 
         | Agreed. Tickets are a luxury item. The only fix is for the
         | artists to do more shows. Obviously this is hard on the
         | artists, but I wonder if they could do short term residencies
         | in a place like Vegas? If Taylor Swift played every other night
         | for 3-6 mos. in a fixed location, it seems like everyone could
         | eventually see her show if they wanted. Fans would probably
         | spend less than 2-4k each even accounting for any travel.
         | 
         | I also don't find the lottery method 'fair' either. Random yes,
         | but not necessarily fair if a person can only see a show on a
         | certain date and doesn't win the lottery.
        
         | qeternity wrote:
         | > The only "fair" way to sell a good that's in high demand and
         | you want everyone to have the same level of access regardless
         | of their background is a lottery.
         | 
         | After centuries of failing to manipulate natural market forces,
         | I don't understand why people continue to think it's possible.
         | All that a lottery does is incentivize everyone to participate,
         | even those who have no interest in going. Then a secondary
         | market will engage in actual price discovery and you're left
         | with the current system.
         | 
         | There is really no way to beat the system. Prices are what
         | people are willing to pay. I'm not sure how any other system is
         | fairer? Let's say I'm a middle class Taylor Swift mega fan and
         | save up for years to drop $4k on a ticket. Instead, we move to
         | a lottery system and I don't get picked. I want to go way more
         | than most people, as evidenced by the amount I'm willing to
         | pay. But now I don't get to go. How is that fair?
        
           | yardstick wrote:
           | > All that a lottery does is incentivize everyone to
           | participate, even those who have no interest in going. Then a
           | secondary market will engage in actual price discovery and
           | you're left with the current system.
           | 
           | How would the secondary market work if you have to put
           | peoples names on tickets upon buying the ticket. No renames
           | allowed (bring your name change deed poll and old and new IDs
           | I guess). Can't make the concert? Tickets can be refunded for
           | the original price (maybe minus a token handling fee), and
           | the ticket goes back into the next lottery sale pool.
        
             | cbsmith wrote:
             | My name is Chris Smith.
             | 
             | Solve that.
        
               | fragmede wrote:
               | Maybe it'll let you go on a free trip round the world!
               | https://www.bbc.com/news/newsbeat-30530070
        
               | yardstick wrote:
               | Name and date of birth
               | 
               | Edit: Also Chris Smith is still a very limited sales
               | opportunity compared to everyone. Plus Chris would be
               | going alone assuming their partners name was not listed
               | correctly or partners name didn't have a ticket matching
               | that too.
               | 
               | Hamilton already does something similar with having to
               | present your ID plus the credit/debit card used for
               | booking and the names must match. See
               | https://www.ticketmaster.co.uk/hamilton/terms.html
               | 
               | The flaw in Hamilton is it's only the name of the payer,
               | but if multiple seats in one booking, those additional
               | seats could still be on sold so long as the scalper
               | escorts them into the theatre.
               | 
               | Solved by requiring names and dob for all ticket holders.
               | No changes allowed. Mistakes (wrong name or dob) must be
               | refunded and tickets back to lottery.
        
               | fragmede wrote:
               | Not so hilariously for people this applies to, but the
               | combination of name and DOB _still_ isn 't actually
               | unique either. I'll skip rewording it and just leave this
               | link
               | 
               | https://www.kalzumeus.com/2010/06/17/falsehoods-
               | programmers-...
        
               | yardstick wrote:
               | It doesn't need to be absolutely unique though. It just
               | needs to make the secondary market infeasible. I would
               | argue that only being able to re-sell tickets on the
               | secondary market to "Chris Smith" is going to result in
               | essentially no ticket scalping.
        
         | 2OEH8eoCRo0 wrote:
         | > Accept that tickets are a luxury item, like Ferraris.
         | 
         | Exactly. High demand and low supply means not everyone gets to
         | see Taylor Swift. That's life. I don't see the issue.
        
           | sopooneo wrote:
           | I believe the problem is that fans perceiving a "that's life"
           | sentiment from Taylor Swift will hurt her total long term
           | profit.
           | 
           | And that's in addition to Taylor Swift, personally, wanting
           | non-elites to share in the show experience, which I have no
           | proof of but happen to believe
        
       | tromp wrote:
       | How about an auction of lottery tickets where the price is fixed
       | but the probability of winning increases over time? Still
       | identity verified so that each person can buy only one ticket and
       | if they win they must attend themselves.
        
       | e12e wrote:
       | Meh. I like the Fusion Festival raffle system better.
       | 
       | Allow people to sign up to buy, optionally as a group (all/none
       | "win") - then randomly assign "purchase rights".
       | 
       | The main downside might be the need for ID checks to verify no
       | scalping.
       | 
       | https://tickets.fusion-festival.de/faq/#faq-12
        
       | timpetri wrote:
       | I feel like Dice.fm already solved this. You can buy an
       | untransferable ticket and if you cant go, you simply return it to
       | a wait-list of people who have signed up. You get your money
       | back, and they pay the same price. Maybe there are some
       | transaction fees involved but overall this eliminates the ability
       | for someone to buy just to sell?
        
       | zelienople wrote:
       | It's not the ticket system that is broken; it's the people.
       | 
       | The problem with stadium tours is that 95 percent or more of the
       | seats are awful. They provide an extremely poor concert
       | experience.
       | 
       | The sound is very bad for most of the audience. Many
       | technological innovations in stadium sound have tried to address
       | this, but the underlying physics has been resistant to an
       | acceptable solution.
       | 
       | The visuals are even worse. An enormous fraction of the audience
       | cannot resolve the headliner on stage as a result of the size of
       | the performer and the distance to the viewer. The visuals then
       | devolve to the viewers ability to see an enormous television
       | screen.
       | 
       | So why would anyone want to go to a stadium show, if not for the
       | visuals and the audio?
       | 
       | It comes down to human competitiveness. Bragging rights.
       | Ingesting mass media nonsense about how a product or experience
       | will make one feel, and then disgorging it to a peer group as a
       | method of creating an artificial distinction between the "haves"
       | and the "have-nots".
       | 
       | Taylor Swift, in particular, has been a genius at creating
       | hysteria among her fans. They have ingested the idea that, if
       | Taylor is in town, and you are not there, then you are a resident
       | of the outer, miserable, darkness.
       | 
       | The truth, however, is that if you attend a stadium show, the
       | only positive aspect is that you "were there". You will not see,
       | hear, or in any meaningful way, experience the object of your
       | hysteria. You will be packed into a seat with a group of
       | strangers also experiencing a mass-media induced mental
       | derangement.
       | 
       | The foregoing may lead you to believe that I am not a fan, but
       | you would be wrong. My opinion was formed by the experience of
       | going to all the Taylor Swift stadium tours, up to a certain
       | point.
       | 
       | What changed was that I stopped fighting Ticketmaster at one
       | point. I opted out and did not buy a ticket. However, I still
       | wanted to go to the show. All seats were prohibitively expensive
       | on the secondary market; good seats, even more so.
       | 
       | There were two shows in my city on subsequent nights. The first
       | night, I watched prices on the scalper sites and I discovered
       | that, in the last few minutes before the start time of the show,
       | prices for even the best seats tumbled dramatically.
       | 
       | This was simple economics; unsold seats are a cost that subtracts
       | from overall profit. It makes sense to dump them for any amount,
       | even at a loss.
       | 
       | The second night, I waited until the price for a single front-row
       | seat fell below the original price of the least expensive seat
       | anywhere. I bought it, printed my ticket, and went to the show.
       | 
       | This was a transformative experience because I was literally a
       | few metres from the stage. I could get out of my seat and stand
       | by the barricades and see and hear as if the show was at at my
       | neighbourhood folk club or an open mic night. I then turned
       | around, with Taylor directly behind me, and I could see the view
       | of a packed stadium waving lights and singing along, just like
       | what those on stage would see.
       | 
       | I learned the difference between what the few who had the money
       | or influence to obtain the best seats experience, and what the
       | great majority of stadium show concert-goers endure.
       | 
       | I was cured. I have never, since that day, had any desire to
       | attend a stadium show or buy a ticket for a standard seat in any
       | large venue.
       | 
       | Unfortunately, it isn't really practical to educate a significant
       | fraction of fans by demonstrating this.
       | 
       | Maybe there is a technological solution, though. If we could
       | arrange for people to have a feed from a front row observer in
       | fully immersive VR, we could perhaps recreate enough of the
       | experience that the rush to purchase a grossly substandard
       | product would diminish.
       | 
       | There are probably significant economic forces that would oppose
       | this (Ticketmaster, obviously) because education is often the
       | enemy of mass-market driven capitalism.
       | 
       | The longer-term solution is probably to recognize that the innate
       | social behaviour of humans has been exploited to our total
       | destruction by those who would hoard all wealth for themselves,
       | and to begin another great eugenics experiment: breeding
       | selfishness, conflict and the tendency to self-destructive herd
       | behaviour out of the human genome, But that is beyond the scope
       | of this discussion.
        
       | tamaharbor wrote:
       | Is Taylor Swift that good? I must be very old.
        
         | jethkl wrote:
         | Yes. "As of 2022, Swift has broken 84 Guinness World Records,
         | of which 13 times she broke her own record or regained it, and
         | 74 remain unbroken." [1]
         | 
         | [1]
         | https://en.wikipedia.org/wiki/List_of_awards_and_nominations...
        
           | jethkl wrote:
           | Weird that this got downvoted. In response to "Is ${artist}
           | that good?", I link to an objective list of awards and
           | accolades showing that ${artist} is very good at their job.
           | Compare Swift's success against the Beatles, Dolly Parton
           | [1,2] or anybody else, and it's a very strong showing. If you
           | don't like the art, that's a completely different matter. But
           | in the sense of whether Swift is good in the way that matters
           | here, the answer is clearly, "Yes."
           | 
           | [1] https://en.wikipedia.org/wiki/List_of_awards_and_nominati
           | ons...
           | 
           | [2] https://en.wikipedia.org/wiki/List_of_awards_and_nominati
           | ons...
        
       | wombat-man wrote:
       | - Digital only tickets - By default, the tickets are not
       | transferrable. Use your app on your phone to get in. - You can
       | pay a fee to make tickets transferrable/scalpable. - The fee
       | increases as more tickets are sold with this option (set ceiling
       | on max number of tickets with this option sold)
       | 
       | So okay, you want to scalp tickets, you have to pay more and
       | people who don't want to transfer pay less.
        
         | StingyJelly wrote:
         | I don't like that idea. First, personally, I'll rather pass
         | than install that app.
         | 
         | Second, it would need to heavily rely on device fingerprinting
         | and obfuscation to give scalpers hard time trying to modify the
         | app. Software protection will likely fail anyway when both
         | scalpers and people buying from them have aligned interests.
         | Even if the software protection holds, the price of second-hand
         | phones may be too low compared to price of the tickets, so the
         | "transferability fee" has a practical ceiling, especially since
         | the phone can be sold again afterwards.
        
           | wombat-man wrote:
           | really? I already use axs and ticketmaster apps for tickets.
           | Are you using pdfs or something? The app is nice because it
           | rotates the barcode every minute, and idk how else you'd
           | achieve that. I guess a webapp could work.
           | 
           | I don't think you need to rely on device fingerprinting, just
           | make sure they're logged into their ticketing account. You
           | might see people start to sell accounts with single/pair
           | tickets but that just sounds like a pain, and we could
           | mitigate it if it becomes a problem.
        
         | Marsymars wrote:
         | That works in one sense, in that it reduces demand overall.
         | 
         | I used to go to lots of shows; any time there was a show I was
         | interested in, I'd check the online used goods marketplace 2-72
         | hours in advance and see if I could get tickets below face
         | value. Often I could. Sometimes I couldn't, and I wouldn't go
         | to those shows.
         | 
         | As the result of the move of big shows to digital-only tickets,
         | I've just stopped going to big shows. I just go to local venues
         | where I can pay in cash on entry.
        
       | stevage wrote:
       | Interestingly a major band I saw last night, Crowded House, just
       | came out against any kind of demand driven pricing, and forced
       | TicketMaster to refund all premium ticket charges.
        
       | the_mungler wrote:
       | Why not have a big closed auction? Everyone has a week or so to
       | submit how much they are willing to pay for a ticket. Once the
       | auction closes, sort by price and take the number of seats
       | available. Everyone pays the minimum price that still fits in the
       | seats available.
       | 
       | I'm imagining a large scale Vickery auction, sorry if I'm not
       | explaining super well. Everyone pays the same, but people get a
       | price they think is fair.
        
         | pabzu wrote:
         | As far as I know all the auction mechanisms are equal[1], in
         | the sense that: 1. the items are assigned to the same bidders
         | (paying the same) 2. the revenue of the auctioneer is the same
         | 
         | In that sense you could chose the system that fits you the
         | most. I personally think that selling tickets via auction is
         | indesirable for other reasons.
         | 
         | [1] https://en.wikipedia.org/wiki/Revenue_equivalence
        
         | elil17 wrote:
         | The system proposed in this post has the advantage of correctly
         | pricing every seat individually without anyone having to put in
         | multiple bids. The people buying earlier are paying the highest
         | price and get to choose the best seats. Those buying later
         | would pay less but the good seats would already be taken.
         | 
         | A Vickery auction would not, I think, lend itself to that kind
         | of price discovery.
        
           | the_mungler wrote:
           | Good point, but you could address that by splitting up the
           | seats into multiple auctions depending on the quality of the
           | seats.
           | 
           | People could even bid "conditionally" for multiple sections,
           | and once bidding closes you resolve the separate auctions in
           | order from best to worst. If a person with multiple bids gets
           | a good seat, their bids in the other sections get cancelled.
           | 
           | Seems to me that this could have very similar results as the
           | dutch auction method, but each ticket is more fairly priced.
           | Your ticket costs the same as the next guy, assuming they
           | have a seat in the same section as you.
           | 
           | Edit: also, as mentioned somewhere else here, you're likely
           | to have a threshold where everyone wants to buy once they see
           | available seats start to disappear, causing a kind of "bank
           | runoff" where everyone rushes to buy tickets all at once,
           | putting us back where we started.
        
       | billyt555 wrote:
       | Ticketmaster could have done everyone a huge favor by simply
       | staggering the sales for separate dates a bit and not trying to
       | sell tix for every show all at once.
        
       | somehnacct3757 wrote:
       | I don't get what this has to do with combating scalping. This is
       | just a new auction game to play. It levels the playing field for
       | a time, as all new games do, but the scalpers will eventually win
       | it.
       | 
       | In this case the game is to find X where X is the percent of
       | concert goers willing to pay scalpers. Then you buy the bottom X%
       | of tickets for the current price and list them for more money.
       | This is easy to do because the auction site tells you the number
       | of remaining tickets.
       | 
       | Since there's no supply of auction tickets left, scalpers can now
       | set the price. And since they paid the lowest price out of any of
       | the ticket holders, they hold all the power.
        
         | mabbo wrote:
         | The idea is that everyone willing to pay more than $X for
         | tickets bought their tickets before the scalpers can buy it for
         | $X.
        
           | somehnacct3757 wrote:
           | X isn't the price in my solution it's the percent of concert
           | hopefuls who will hold their nose and pay a scalper. Once
           | there's exactly that many tickets left, there's no point
           | running the auction anymore. Scalpers should use their bots
           | to completely buy up all remaining tickets, as they do now,
           | and then set them for a higher price on the secondary market.
           | 
           | Buying the first 1-X% tickets nearly guarantees you will pay
           | more than the scalp price except for a thin band right before
           | X where the prices are within the scalper's margin.
           | 
           | Basically this system only beats scalpers if everyone is
           | richer than scalpers, which most concertgoers are not. If
           | you're rich you might like the sound of this new system on
           | paper but it's actually cheaper for you to stay with the
           | current system and buy all your tickets on the secondary
           | market.
        
             | pclmulqdq wrote:
             | Wait, they didn't choose to buy a ticket at the price the
             | scalpers got (plus epsilon), so why would they pay more
             | when the scalpers come around with a ticket?
        
               | somehnacct3757 wrote:
               | Cuz the auction ran out of tickets so the price starts to
               | climb as scalpers monetize FOMO. Regular purchasers don't
               | know what the scalpers think X is for this particular
               | concert. Even if you knew X, all you could do is try to
               | buy a ticket right before the remaining quantity reaches
               | X which guarantees you paid more than the scalper, but
               | maybe not more than the scalper's resell price.
               | 
               | X is the moment scalpers buy up the remaining market and
               | set their own prices now that they control the supply.
               | They know many other ticket holders can't compete with
               | them since they paid more money for their ticket.
        
               | pclmulqdq wrote:
               | Regular purchasers would learn to not try to game the
               | auction like that any more. In the scenario you
               | described, they are only losing out on tickets because
               | they are getting greedy and trying to buy them for less
               | than they think those tickets are worth.
               | 
               | The point of auctions is that the right strategy is to
               | bid to your price, not to try to guess what other people
               | think the price should be. That's why they work.
        
               | somehnacct3757 wrote:
               | Again, X is not a price it's a demand level (for scalper
               | tickets). Everyone can 'bid their price' and scalpers
               | will still buy out the bottom of the auction and take
               | control of the pricing.
        
               | pclmulqdq wrote:
               | Those hypothetical scalpers will indeed have control of
               | the pricing, but they will have no customers willing to
               | pay what they have paid, because all customers willing to
               | pay more will have already bought tickets.
               | 
               | In theory, there may have been holdouts who wanted to get
               | a better price, as you are suggesting, who then turn to
               | the scalpers. Those holdouts are either (a) irrational
               | for not bidding the price they were willing to pay or (b)
               | not actually willing to pay whatever price the scalpers
               | want to get.
               | 
               | By taking this strategy of picking a demand level X and
               | buying out all the tickets once the supply is below that
               | level, scalpers are virtually guaranteed to lose money.
               | 
               | For most goods, there is no demand that is independent of
               | price.
        
       | langsoul-com wrote:
       | This isn't fair to those who can only afford standard priced
       | tickets.
       | 
       | It will maximise profits, but is not fair.
       | 
       | Other platforms do waves, split across time zones. That would
       | distribute the load to prevent crashes.
        
         | pclmulqdq wrote:
         | The current system isn't very fair to those people either.
         | 
         | Professional scalpers act like high frequency trading firms
         | (some HFTs are ticket scalpers), and employ tens of thousands
         | of dollars worth of computer equipment to get those seats
         | before the poor rubes who hoped for standard priced tickets.
         | 
         | By contrast, an auction system actually levels the playing
         | field by removing the technological advantage.
         | 
         | They don't have to run a Dutch auction specifically, other
         | kinds of auctions exist too.
        
       | wanderingbort wrote:
       | I will start to sound like a broken record soon but blockchain
       | has provided a wealth of information about "fair" distribution
       | games and their downfalls.
       | 
       | The NFT summer of 2021 saw first come first serve distros gamed
       | by parties with superior network positioning.
       | 
       | Dutch auctions (from the article) strongly favored the wealthy
       | buyers not fans or parties who "pay" with other things of value
       | like their time.
       | 
       | Lotteries were easily games by sock puppets.
       | 
       | Lotteries with "strong" identity verification created grey
       | markets for identities. Think about mechanical Turk but peoples
       | task is to get a lottery ticket and remit the winnings.
       | 
       | People tried social credit systems where participating in
       | community activities like discords earned you the spot in line.
       | Again, services arose to farm these spots.
       | 
       | Fascinating microcosm of human behavior.
       | 
       | I agree with commenters that suggest refundable non-transferable
       | tickets however, for goods this scarce where a secondary market
       | is valuable, I don't think we have a simple good solution.
        
       | TarasBob wrote:
       | The process needs to be modified slightly. Everyone should end up
       | paying the same amount for the ticket in the end. Those who
       | bought early should not be penalized. When the the last ticket is
       | sold, everyone should pay the same price as the last ticket. So
       | when you buy early, you are just indicating the _Maximum_ price
       | you are willing to pay.
       | 
       | There should also be an option to automatically place a bid once
       | the price reaches a certain level.
       | 
       | That's the most fair way to auction off a bunch of identical
       | things.
       | 
       | Another modification I would add to this is that let's say 20% of
       | the tickets should be sold for very cheap using a lottery system.
       | So that not only the richest people could go to the concert.
        
         | TarasBob wrote:
         | The mechanism should also include the possibility of figuring
         | out the optimal venue size in advance. I'm not sure what's the
         | right way to modify it in order to accomplish this goal.
        
         | TarasBob wrote:
         | Also, if the artist doesn't want to maximize their profits
         | through this auction mechanism, the extra money received should
         | be donated to charity.
        
       | Euphorbium wrote:
       | Interesting how there is absolutely none of this problem in
       | Europe, as tickets are tied to an ID and there is no reselling or
       | scalping.
        
         | dottedmag wrote:
         | In Estonia, Germany, Malta or Iceland?
         | 
         | I have never had a ticket tied to ID anywhere in Europe.
        
         | leejo wrote:
         | We attended a few gigs in Italy this summer. Two of them we
         | bought tickets first hand, they were indeed tied to a name with
         | ID required. Was ID checked? Nope, of course not. One was a
         | medium sized venue (3000), one a stadium, and one small (c.
         | 300).
         | 
         | Tying to an ID is a nice idea in principal...
         | 
         | Another gig we bought tickets second hand, the seller had to go
         | through the original site to return their tickets and then we
         | could purchase them (I wrote a script to poll the site to find
         | available tickets as they had sold out quickly). Did they check
         | our IDs? Nope, of course not.
         | 
         | Requiring ID and having to return the tickets to the original
         | site for resale is probably the optimal solution. But in
         | reality if IDs are not checked it pretty much falls apart.
        
       | whall6 wrote:
       | As an artist, connect with your top listeners on Spotify / Apple
       | Music and give them a onetime use link to buy $20 tickets and
       | allocate the rest of the tickets by auction.
        
       | hluska wrote:
       | Pearl Jam tried to beat Ticketmaster. At the risk of sounding
       | like the big fan I am, if Eddie Vedder and co. (at their
       | commercial peak) can't beat Ticketmaster, I'm not convinced that
       | software can.
       | 
       | I've been pasting this Rolling Stone link since I was in my
       | teens. I can't believe how old I am...
       | 
       | https://www.rollingstone.com/music/music-news/pearl-jam-taki...
        
         | glitcher wrote:
         | Fugazi is a great example, although not as popular they refused
         | to charge more than $5 for their shows. I saw one in a small
         | venue and it was raw and in your face and just awesome. They
         | also didn't want anything to do with merchandising, insisting
         | that if you wanted a Fugazi shirt then go make your own!
        
           | glitcher wrote:
           | Arpeggiator track:
           | 
           | https://youtu.be/14UBxTCPwjw
        
           | TylerE wrote:
           | The other big thing Fugazi did was completely ignore the
           | traditional venue system.
           | 
           | They'd rent out bowling alleys, Elks Lodges, places like
           | that. Hauler their own PA and lights around
        
         | ssttoo wrote:
         | Recently I went to see PJ with a friend. I had the tickets but
         | I was going to be late so tried to transfer one ticket. Nope,
         | not allowed. Both of us had to be there with my app. If I
         | wanted to sell it I can but not to a person. I can just release
         | it back at the original price and no fees. So PJ are still
         | fighting the good fight and TM plays along. Unfortunately most
         | artists don't have PJ's influence, so probably not an option
         | for everyone to set the rules.
        
           | pythonaut_16 wrote:
           | What about a system where only some fraction of the ticket
           | sale has to present matching ID?
           | 
           | Example 1: Limit of 6 tickets per purchase. I buy 6 tickets,
           | I invite 5 friends. I show ID at the door and it doesn't
           | matter which 5 friends I bring with me.
           | 
           | Example 2: Same deal, but instead we're allowed 1 "flex"
           | ticket in case someone backs out. Or some proportion allowed
           | as flex.
           | 
           | Obviously this still allows scalping, but it seems less
           | attractive for a scalper to have to attend with the people
           | they're scalping to. Especially if you make 50% of the group
           | show ID.
        
             | judge2020 wrote:
             | > Example 1
             | 
             | This is how it works, only the primary purchaser has to
             | show id. You can bring anyone in but you have to show up
             | together, so if you do pay a scalper/reseller then they're
             | at least also a PJ fan and you'll be walking in together.
             | 
             | > Example 2
             | 
             | With the PJ tickets, you actually can sell them, but you
             | just get a refund and they're released back into the ticket
             | pool on ticketmaster.
        
           | [deleted]
        
           | musicale wrote:
           | I think I can live with the approach of banning transfers but
           | still offering refunds.
           | 
           | Seems like it would make deter scalpers since they'd have to
           | show up at the concert or provide you with a fake ID which
           | might not work.
        
             | de6u99er wrote:
             | Yeah, screw scalpers!
        
               | izacus wrote:
               | It just replaces one scalper with another. Why the heck
               | do you want to allow TM to double scalp you with fees
               | just to give a ticket to your friend or family?
        
             | darkwater wrote:
             | And TM can get twice the commission!
        
           | glitcher wrote:
           | Curious how was the show? Had you seen them previously and if
           | so how did it compare?
        
           | pbreit wrote:
           | The transfer limitation is specifically to mitigate scalping.
           | What would you prefer?
        
         | yehSooBit wrote:
         | Ticketmaster is a logo that represents decades of deal making
         | with venues to achieve the status quo.
         | 
         | The only way to defeat it is a RICO case brought by the Federal
         | government, as venues, artists (not all, but many), are
         | collaborating behind closed doors to enable it.
         | 
         | I gave up on big acts long ago because of TM and stick to local
         | bars and local bands. Relativity and all that; I'm in a major
         | metro with many cover bands that nail the vibe of the original
         | and novel acts; not lacking options here. YMMV
        
           | neilfrndes wrote:
           | I too feel that cover bands nail the vibe of the original. I
           | live in a metro, but I've had a hard time figuring out when
           | and where cover bands play. Some bands don't even have a
           | website.
           | 
           | How do you find out when a cover band of your favorite artist
           | is playing in your city?
        
             | pas wrote:
             | ask around in the relevant communities (underground clubs,
             | other relevant venues, zines, pubs)
             | 
             | usually you end up with a few Facebook links
             | 
             | not ideal, but eventually you will know which cover bands
             | are even worth looking out for, and where they would play,
             | so you can monitor sites of the venues
        
         | pbreit wrote:
         | "beating" ticketmaster is pretty easy: play at venues that are
         | not locked up by TM.
         | 
         | But TM really isn't that bad. There's always going to be a
         | problem when demand far exceeds supply. If you went with pure
         | supply/demand sales rich people would buy all.
        
           | libraryatnight wrote:
           | Do you go to a lot of shows? Ticketmaster is very bad.
           | Abusive even. Regardless of demand.
        
           | fivre wrote:
           | TicketMaster has used their market dominance to be display
           | incompetence in customer service with no consequences.
           | Emailed me a "make sure to have your tickets at the show, we
           | mailed them" the day of, sending me into a panic because I
           | hadn't received them. Support was something like an hour-long
           | queue to maybe chat with someone in the Philippines with no
           | info, so I said fuck it and bought another ticket will-call
           | in a nicer section--the show in question wasn't something I'd
           | likely have the opportunity to see again for at least a
           | decade.
           | 
           | Got to the venue to discover that I now had two will-call
           | tickets, since that's how I'd originally purchased the first
           | one, but TicketMaster somehow broke that record on their end.
           | 
           | Never encountered that level of bullshit from any of the
           | smaller providers. TicketWeb was great when I lived in a
           | market where they were the majority and Eventbrite is fine
           | AFAIK. But now I live in a major market and TicketMaster is
           | the only option for all but the smallest venues. What are you
           | gonna do if you don't like them, anyway? Buy out the venue
           | yourself?
        
         | paxys wrote:
         | You underestimate Taylor Swift fans.
        
         | hiccuphippo wrote:
         | Why can't they beat them? Advertise your website, people go to
         | your website and click the buy button, a form shows up to fill
         | their card data. What does Ticketmaster do that is better?
         | Don't they have the same workflow?
        
           | gnopgnip wrote:
           | Most artists don't want to charge $20, they want to charge
           | $200 and blame it on someone else. That is a big part of the
           | value proposition for ticket master. And they can allow
           | ticket resale so the artist/promoter gets another cut, so
           | shows sell out faster.
        
           | mason55 wrote:
           | Most major and minor venues have exclusive ticketing
           | contracts. You can sell tickets to a high school gym but if
           | you want to play anywhere that can handle a real crowd you're
           | stuck with the monopoly.
        
             | larsiusprime wrote:
             | So it's essentially a real estate monopoly at heart?
        
               | pas wrote:
               | more like monopoly on the venue service. (a place where
               | you have the permit to organize large group events, so
               | proper exits, toilets, accessibility (if required);
               | bag/clothes storage, waiting area, permit to sell
               | alcohol, staff for all this, sufficient electricity
               | connection, HVAC, ability to assemble a stage and the
               | frame for lights and the soundsystem)
               | 
               | for example rave organizers in LA can do it in a lot of
               | potential warehouses, because they have the staff &
               | process to get the permits, setup the tech, cleanup, etc.
               | 
               | but as the gig grows fewer and fewer venues can host it,
               | and that's how LiveNation managed to consolidate most of
               | the high-capacity venue market
               | 
               | and there is efficiency in vertical integration, for
               | everyone involved. what people find atrocious is the lack
               | of cost breakdown transparency.
               | 
               | bands and ticketmaster/LiveNation could simply hide
               | everything, display just the actual final price and then
               | distribute the cash according to their actual contracts
               | (which they do anyway)
               | 
               | why they anger the masses with this is completely beyond
               | me, but ... after spending a few years on the outskirts
               | of this industry, I think they just have bigger problems,
               | never really understood UX anyways, nothing forces them
               | to do so, aaand it absolutely keeps the conversation on
               | them and not on bands/venues, etc.
        
               | MichaelZuo wrote:
               | So why don't some enterprising well known
               | artists/VCs/record labels/ pool together some money to
               | build a new large venue, and control the ticketing
               | themselves?
        
           | cortesoft wrote:
           | > What does Ticketmaster do that is better?
           | 
           | A large war chest with which to pay venues for the exclusive
           | right to sell tickets there.
        
       | etothepii wrote:
       | While this might maximise the amount of money the organisers get
       | for an event it doesn't handle variable fixed costs.
       | 
       | That is I might need no capital at all to run my tour if I sell
       | tickets at a highish (but sub-optimal) price early on.
        
         | smachiz wrote:
         | What are the variable "fixed" costs? And when are they
         | incurred?
         | 
         | This is about revenue maximization, not user enjoyment
         | maximization or fairness maximization.
         | 
         | Ultimately I don't think most artists actually want revenue
         | maximization - they're probably far more interested in fairness
         | maximization in ensuring their fan base of all economic strata
         | get to see them live.
        
           | etothepii wrote:
           | As in if I know I will make $1m in sales I might choose to
           | use better audio equipment.
        
       | etchalon wrote:
       | There is no such thing as a "fair" way to sell anything where
       | demand vastly outstrips supply.
       | 
       | There are just choices about what resource you want to prejudice
       | for: money, time or luck.
        
         | barnabask wrote:
         | This really made me reconsider my phrasing, and then the basis
         | for my assumption about "fairness". Thank you for your thought
         | provoking comment.
        
       | matai_kolila wrote:
       | > Shameless plug: I understand how to make and launch exactly
       | this kind of system, at least technically. If you want it built,
       | please contact me.
       | 
       | I cannot roll my eyes hard enough - if you can, then do it
       | already. Why the hell do you need the encouragement?
        
         | TaylorAlexander wrote:
         | I think they mean "if you want to pay for it".
        
           | matai_kolila wrote:
           | It costs nothing but time to build the service. His hesitancy
           | is a red flag for potential partners.
        
             | TaylorAlexander wrote:
             | "nothing but time"
             | 
             | Time is expensive though...
        
               | matai_kolila wrote:
               | It is not, not if you can build this system on your own.
               | 
               | Demanding you be paid for your time to build this
               | demonstrates you aren't convinced it's a profitable idea,
               | which is a huge red flag to potential investors.
        
               | TaylorAlexander wrote:
               | I mean, I'm in this exact situation right now and it's
               | working great. I wrote a short story about an automated
               | farming commune running on open source farming robots.
               | But I can't afford to spend years of my life working on a
               | problem I'm not getting paid for. Then I met someone who
               | dreams of running automated farming robots at his farm,
               | and now for four years now he has been paying me to
               | develop it.
               | 
               | I've done entrepreneurship, and it's extremely stressful.
               | Sometimes people know how to do something but don't want
               | to do it unless they're going to get paid directly for
               | the labor. Despite all the stories here on HN, this is
               | actually fine.
        
             | barnabask wrote:
             | Apparently not. Some have already reached out.
        
               | matai_kolila wrote:
               | I seriously doubt that.
        
           | barnabask wrote:
           | Yep.
        
       | fparlane wrote:
       | I wonder if you'd see "bank runs" happen spontaneously as nervous
       | fans see the number of available tickets start to drop, causing a
       | spontaneous feedback loop.
        
         | the_mungler wrote:
         | Hmm, that actually seems quite likely to me.
        
           | projektfu wrote:
           | Congratulations, you've found the market-clearing price.
        
         | pclmulqdq wrote:
         | That's not a bank run or a feedback loop, that's price
         | discovery. Exactly the behavior you want.
        
       | jonas21 wrote:
       | It seems like this would produce the same outcome as
       | Ticketmaster's dynamic pricing. According to this article, fans
       | hate it [1].
       | 
       | [1] https://www.vice.com/en/article/m7gx34/blink-182-tickets-
       | are...
        
         | barnabask wrote:
         | Interesting, thanks for the link. Similar outcomes perhaps. I
         | guess the difference is that the auction clock is public so it
         | may feel a little less arbitrary than an opaque algorithm.
        
       | GrumpyNl wrote:
       | The biggest problem is ticket scalper. We have developed a ticket
       | system with personalized encrypted tickets. When you are not able
       | to go the event, you to give your tickets back at us and we will
       | refund the money. Because the tickets are personalized and
       | encrypted, you can not swap them.
        
       | adam_arthur wrote:
       | I don't understand at all why prices aren't raised in these
       | severe demand/supply imbalance situations.
       | 
       | Same applies to PS5 etc
       | 
       | There wouldn't be a shortage at all if it were priced
       | appropriately. And scalpers just end up capturing that value
       | anyway
        
         | lotsofpulp wrote:
         | Because sports teams and singers need broad audience interest
         | to maintain their brand's popularity, which can drive things
         | like merchandise sales, future concerts, music streaming, etc.
         | 
         | If they simply sold to the highest bidders, the populace at
         | large will stop being fans and they will move onto the next
         | entertainer. In the short term, you might make a little extra
         | from richer people, but longer term you will fall out of
         | popular culture, and the rich will move on or not be sufficient
         | in quantity to maintain as profitable of a following.
        
           | googlryas wrote:
           | But for many big artists the tickets are sold out immediately
           | and it is just scalpers trying to get what they can for them.
           | I'd like to know how many people attending a big concert got
           | their tix directly vs got resold ones not at face value.
        
           | adam_arthur wrote:
           | The scalpers grab most of the tickets at open anyway.
           | 
           | And I doubt that a very large number of fans are concertgoers
           | at all. How many football fans actually go to the superbowl?
           | 
           | I looked it up and it's ~80k, while 100M watch on TV. The
           | cheapest tickets are ~$5000 dollars
        
             | duped wrote:
             | The largest NFL stadium seats about 85,000 people. So you
             | can't sell more than that for the single game. Two years
             | ago they actually set the record lowest attendance due to
             | Covid restrictions - only about 21k were allowed in the
             | building. I believe it's the first SB to ever sell below
             | capacity, and you'd have to go back to the second world war
             | to find an NFL championship that did the same.
             | 
             | Also, music is fundamentally better live. Football is not.
             | I say this as an avid fan of both who attends both live.
        
             | HWR_14 wrote:
             | There's a difference between "the odds are against you" and
             | "nope, sorry". Even if those odds are extreme.
        
               | s3000 wrote:
               | There is always the option to change the odds for fans.
               | E.g. offer cheap tickets for members of the fan club and
               | last minute tickets to fans who post the most convincing
               | appeals on social media.
        
           | dqpb wrote:
           | This argument makes no sense. A stadium excludes the same
           | number of fans regardless of your selection criteria.
        
             | adam_arthur wrote:
             | Yes, just as a concert does.
             | 
             | Creating hunger games in the ticket buying process doesn't
             | change that
        
         | Fezzik wrote:
         | They are. Ticketmaster does dynamic pricing now for big shows.
         | Accurate pricing is basically inaccessible beforehand; there's
         | no chart like in the past with various sections costing
         | specific $s. For the Taylor Swift show in Seattle they
         | published a range of ticket prices from $49-$199... we paid
         | ~$600 for seats in section 131 that were VIP seats by default
         | (that also added to the price; but the pricing was totally
         | opaque).
        
           | koolba wrote:
           | $600 per ticket?
        
             | Fezzik wrote:
             | Yup; $600 per ticket.
        
               | musicale wrote:
               | There would probably be some backlash for a Taylor Swift
               | concert where the whole arena was $600 VIP tickets.
               | 
               | Rolling Stones though? Maybe not.
        
               | Fezzik wrote:
               | Seats 10+ rows behind us sold for $2,900 today... concert
               | tickets are a crazy business these days.
        
           | filmgirlcw wrote:
           | Can confirm this.
           | 
           | So I got tickets to the Sunday 7/23 show in Seattle and the
           | 5/27 show in New Jersey (and would have had seats for the
           | 4/29 in Atlanta but my dad's phone was on silent and he
           | missed the 2FA code for his capital one card -- I'll have to
           | get those from scalpers) and what's interesting is that I got
           | floor seats for a VIP package in New Jersey and "regular"
           | non-VIP floor seats for Seattle. It was $190 difference after
           | fees between shows.
           | 
           | For New Jersey, it was $749 list for floor VIP and then $866
           | per with fees. For Seattle, it was $539 list and $650 with
           | fees. Getting the LED laminate thing and the other
           | collectible stuff isn't worthless but it's not a $200
           | upcharge.
           | 
           | But as you said, the whole thing was so opaque, I just bought
           | what I could buy. I would've paid more if I'd needed to. A
           | friend who is going on 7/22 in Seattle (we were on Zoom doing
           | it together) wound up paying $900 after fees for her floor
           | seats that were in a differently named (but identically
           | featured, perk wise) VIP package, meaning some of them went
           | even higher.
           | 
           | So the whole thing was just totally opaque but there wasn't
           | even choice for people who were indiscriminate on pricing
           | (buying from scalpers aside). It was madness just trying to
           | get tickets at all. I needed six seats for 5/27 and I'm still
           | not sure how I was able to get six floor seats together, VIP
           | or otherwise. After doing the whole thing in three cities
           | across two days, every ticket they had available sold,
           | regardless of price. If they'd raised prices 50%, I don't
           | think it would have changed anything. Some of it is demand
           | but some of it is absolutely people buying on speculation to
           | try to flip.
           | 
           | Unless an industry connection comes through, I'll wind up
           | paying well above list for the Atlanta show I want to take my
           | mom to, I know that. My only issue is that
           | StubHub/Vivid/others charge at least 50% on top of the resale
           | price in fees. So even if I was willing to spend $1500 a
           | ticket for 100 section seats (and to take my mom, I would),
           | I'd wind up paying another $600 or $700 per ticket just in
           | fees. And that's when I get pissed off and start to try to
           | wait out the people who bought tickets just to speculate
           | until they lower their prices to be more aligned with market
           | forces.
        
         | naniwaduni wrote:
         | Scalpers provide them the service of absorbing demand risk and
         | having someone to blame for the gap between perceived and
         | market value. (It doesn't _have_ to be scalpers; see also
         | Ticketmaster. The point is that it 's valuable to farm this out
         | to third parties that everyone can agree to hate on.)
        
           | leni536 wrote:
           | So the obvious arbitrage is to scalp their own tickets.
           | Capture both the gap and save face, just don't let anyone
           | know. /s
        
         | dec0dedab0de wrote:
         | Sometimes promoters hold tickets and put them on the secondary
         | market themselves. But they sell tickets to scalpers as a way
         | to gaurantee a certain level of profit. Which lowers their risk
         | of losing money, especially when spread over a large amount of
         | events. The scalper business model is to buy risk from the
         | promoter, and then selling the convenience of not planning
         | ahead to consumers. Said differently, If promoters try to
         | capture maximum value for every ticket, they will risk making
         | less money at a slower rate.
         | 
         | That said, I think it might work if they start every sale of
         | tickets with an initial high price that reduces on a defined
         | schedule. So people with more money to spend can gaurantee a
         | spot for themselves, while everyone else waits for the tickets
         | to get cheaper.
         | 
         | Edit: ha! I obviously didn't rtfa before my comment.
        
           | adam_arthur wrote:
           | Yes, or could simply be a live market for the tickets where
           | people can put in limit orders etc. Then would converge to
           | fair market value quickly and people would still have the
           | option to bite the bullet and pay the higher prices.
           | 
           | Though volume/liquidity would be at question, but
           | bots/arbitrage would hopefully help there.
           | 
           | If they really want to set artificially low prices and
           | prioritize fans over scalpers then they need a queue and a
           | process by which they verify the queued person is human. Lots
           | of labor involved. Though maybe using SSN (in the US) to
           | limit tickets per buyer?
        
         | munk-a wrote:
         | Because their product is essentially unpriceable. If the
         | concerts were priced by demand their demand would dry up
         | considering that instead of forty people wanting to hear jazz
         | on a saturday night you've got 30 million people screaming
         | their lungs out - the only reasonable market response to this
         | is for the pricing to adjust so that only the most wealthy can
         | attend but then you'll get an issue where the performer will
         | lose mass appeal since they so infrequently perform for
         | "regular people" and it will cheapen their brand. It's a weird
         | catch-22 and the real honest solution is that recordings are
         | the solution to this problem but people still obsess over live
         | performances.
        
       | fedeb95 wrote:
       | Depends of the definition of "fair". To me, giving away infinite
       | free tickets to interested people and then extract with a uniform
       | distribution would be fair. Of course you need to provide some
       | kind of ID and go at the concert with that. Comes the problem of
       | fake ID, but that seems negligible.
        
       | jwithington wrote:
       | Worked in the sneaker resales world. Artists, sneaker companies,
       | etc., are all aware that the Dutch auction could solve the
       | problem.
       | 
       | But they choose not to pursue because of reputational/brand
       | damage. It's a shame!
        
       | whartung wrote:
       | Back in the day, The Who was presenting "Tommy". First time they
       | were doing it live again. The "cheap" tickets were $75. This was
       | a smaller venue.
       | 
       | $75 was a bit of money to be sure.
       | 
       | Back then you waited outside record stores to buy tickets. You'd
       | line up, and sometime before the sale, they'd come out and hand
       | out numbers, say 1 to 100. Then you'd sort by the number. Then
       | they'd come out and say "We're starting the line at 37". 37 would
       | be the front of the line, everyone else would sort behind that,
       | wrapping around at the back. #36 would be the last in line.
       | 
       | When I went to buy Tommy tickets, they were also selling another
       | acts tickets.
       | 
       | Since the tickets were so expensive, I went out of my way to go
       | to a lower income neighborhood with the hope that there would be
       | less folks in line to buy tickets, simply due to the price.
       | 
       | In the end, I got my ticket and the lady behind me did not. If
       | they weren't selling the other act, maybe she would have made it.
       | 
       | When the Rolling Stones with Guns and Roses in LA went on sale,
       | they gave out wristbands days in advance. My spot in line was
       | around the building, the first show was sold out before I got
       | there. The seats I did get were basically lousy when I did get
       | them. That took an afternoon.
       | 
       | When I went to buy tickets at the venue, they handed out numbers,
       | but they didn't scramble them. The numbers were random, but #1
       | was first in line. As soon as I got my number, there was a guy
       | offering to buy low numbers. I had not doubt he was going to buy
       | the 8 ticket limit. He wasn't a fan, he was a professional
       | scalper.
       | 
       | U2 tried to sell tickets over the phone in LA, trying to route
       | around TicketMaster. It literally disabled the Los Angeles
       | telephone system for several hours. You'd pick up the phone and
       | not be able to hear a dial tone (I was listening to the modem
       | trying to dial in to a client site). It would take up to 30
       | seconds to get a dial tone, and good luck getting your call
       | through anyway. Total disaster.
       | 
       | Taylor Swift sold out 2M tickets. I don't care what the time
       | frame that was in, that's a boat load of traffic. Think not of
       | the 2M they sold, think of how many were not sold. I think there
       | are few companies that could handle that load, especially
       | something as specific as selling seats A29, A30, A31, and A40 to
       | Bob Jones. Let's see a paper on that locking problem.
       | 
       | The production company sets the ticket prices, TM sets the
       | service fees, if you want to save on service fees, go to the
       | venue. I'm not defending TM, they certainly don't need me, but
       | it's been an intractable problem for a long, long time, at all
       | sorts of levels. If you think TMs fees are bad, try StubHub.
        
         | zetsurin wrote:
         | >Taylor Swift sold out 2M tickets. I don't care what the time
         | frame that was in, that's a boat load of traffic. Think not of
         | the 2M they sold, think of how many were not sold.
         | 
         | Shopify did 3.1M sales per min last year during peek season
         | https://www.shopify.com/ca/blog/bfcm-data. There's more
         | contention for this use case, but I don't think this is as an
         | intractable problem. I do think an alternate model like the
         | post proposes would greatly help.
        
         | graup wrote:
         | I think randomized queues are pretty fair. You give everyone
         | who arrives within a certain time the same chance. This
         | wouldn't be too hard to implement as a system either.
         | 
         | Say ticket sales open at 2pm. From 1:45pm, everyone who gets to
         | the site gets assigned a random queue number. Then from 2pm,
         | users are given access to the ordering system in the order of
         | their queue number. We can even limit throughput with that
         | (e.g. let in n users per minute).
         | 
         | Ticket sites in South Korea already implement queueing systems
         | to control server load. When sales open at 2pm, everyone
         | refreshes the page at exactly that time, but the request is put
         | in a waiting queue. This can be considered randomized in a way
         | (the time someone refreshes the page is somewhat random), but
         | I'd like to see the concept of "advance queue building time"
         | added to that to reduce the stress of "I have to refresh the
         | page exactly at the right moment." Give me a few minutes to get
         | to the queue.
        
       | kqr wrote:
       | Here's an even simpler method, that's actually more fair because
       | it doesn't bias toward those with big pockets or much time or
       | technical skill:
       | 
       | Open up for registration. Keep registration open until the date
       | of the show. Registration costs the price of the ticket. As the
       | show comes close, for as long as there are tickets not sold,
       | randomly select some people every day who receive a ticket. On
       | the day of the show, refund -- with interest -- the money of the
       | people who were never offered a ticket.
       | 
       | I've never understood this obsession with first come, first
       | served for extremely limited resources. Due to technical
       | limitations it pretty much always turns out to be a lottery
       | anyway, and we would save both customers and sysadmins trouble by
       | explicitly turning it into one instead.
       | 
       | (Back in the days when it required camping outside the ticket
       | office, it instead unfairly favoured those with lots of time on
       | their hands, and/or lots of money.)
       | 
       | (I'm assuming "fair" here means that everyone has an equal
       | chance, uncorrelated with any other aspect of their life. A
       | random selection is the only method that can guarantee this
       | property.)
        
         | blowski wrote:
         | I need to buy non-refundable hotels, train tickets, childcare,
         | plus book time off work. Finding out whether all that's
         | necessary with a few hours notice doesn't work.
         | 
         | If you could do something like this for some large proportion
         | of the tickets, and give a month's notice, it might work.
        
       | bluelightning2k wrote:
       | Hard not to read this as "I have a lot of money. I shouldn't have
       | to wait in line with commoners!"
       | 
       | Sorry for the almost political comment but that's how it hit me
        
         | barnabask wrote:
         | That was not my intention, sorry. Thanks for your perspective.
        
       | musicale wrote:
       | I think one reason why artists don't take the Dutch Auction
       | approach is that they want to recruit new fans, including kids
       | who might not have much money. They also probably don't want to
       | be seen as greedy.
       | 
       | In the absence of some system that prevents resale, scalpers will
       | likely still buy up all of the Taylor Swift tickets before they
       | drop to a price that is affordable for these less-affluent fans.
       | 
       | The bots will likely still win if they can determine how many
       | tickets are left and how fast they are selling.
        
         | mhb wrote:
         | I don't see why the Dutch auction doesn't address your
         | concerns. The starting price can be higher, the price drop can
         | be non-linear and third party software using the concert's API
         | can serve customers by providing them with the same information
         | scalpers would have.
        
           | SeanLuke wrote:
           | Did you see the part about selling to kids who don't have
           | much money?
        
             | wiseowise wrote:
             | They don't buy them regardless, bots already bought
             | everything out.
        
             | conradludgate wrote:
             | If the kids didn't buy at the time, that means they didn't
             | buy them before when the tickets were more expensive. Which
             | means that also wouldn't be interested in buying the more
             | expensive scalped tickets either.
             | 
             | Put into context: Tickets are $30 - kid doesn't buy them
             | next day Tickets are $29 - scaler buys them before the kid
             | 
             | The kid has already decided that $30 is too much. For the
             | resale to be worth it, it would need to be more than $1
             | gains, but that is more than the kid has already associated
             | the value to be
        
               | Cederfjard wrote:
               | What if the kid passes at $30 because money is tight,
               | they'd prefer to pay $20 and want to try for that, but
               | scalpers snatch up all the cheapest tickets before the
               | kid is able to. The kid still really wants to go,
               | however, and is willing to actually pay the scalper up to
               | $40 when push comes to shove, even if it hurts a bit?
               | 
               | Or if they weren't organized enough or able to commit to
               | going early on, but still have the purchasing power to
               | pay a higher price?
        
               | mhb wrote:
               | Yeah, the price/time algorithm for the auction can't
               | accommodate every single kid's temporal and financial
               | idiosyncracies. Compared to what?
        
               | Cederfjard wrote:
               | I was mostly asking because the explanation in the parent
               | comment seemed overly simplistic, and to indicate that
               | this approach would destroy the scalpers' business model
               | entirely. I'm totally open to the idea that this is a
               | good solution that would improve on the status quo.
        
               | aetherson wrote:
               | Then they learned a valuable lesson?
               | 
               | I mean, this seems like a low stakes operation. Nobody on
               | their deathbed is like, "If only that Taylor Swift ticket
               | had cost $10 less."
        
               | Cederfjard wrote:
               | See my response to your sibling comment.
        
             | bombcar wrote:
             | The solution there is to play at more venues, or play at
             | more crappier venues.
        
         | tgsovlerkhgsel wrote:
         | The scalper can only make profit if he can buy the ticket at
         | one price, and later sell it not just at a higher price, but a
         | price sufficiently higher to cover the costs of the process
         | (advertising, bot development, customer support, transaction
         | fees, ...), and the profit needs to be worth both the effort
         | and the risk.
         | 
         | In this model, anyone willing to pay more than the scalper paid
         | already had the opportunity to buy at the higher price, so the
         | only people the scalper could sell to would be people who
         | really want to go, are willing to pay a high price, but weren't
         | organized enough to actually buy when the ticket was being sold
         | at that price.
         | 
         | That will almost certainly limit the profit so much that it
         | isn't worth it at all, and even if it doesn't, _anyone who
         | plans ahead will be able to get the ticket directly from the
         | system_.
         | 
         | In the end, it's an auction system. _Which_ auction system is
         | chosen doesn 't matter much economically. You could get similar
         | results by having people bid on the available tickets. But
         | psychologically, that will alienate fans more than a system
         | like this. This only works for shows that will definitely sell
         | out though, because otherwise it creates an incentive to wait
         | for a lower price, deterring people from buying.
         | 
         | (Your first paragraph remains valid of course.)
        
           | matwood wrote:
           | Yeah, people forget scalpers also have downside. When I lived
           | in a big city my partner and I would routinely go to sporting
           | events by paying _under_ face value on the tickets simply by
           | waiting for the event to start. Of course, we had to be ok if
           | it didn 't work out, but most of the time it did. Worst case,
           | we walk back across the street and watch the game from the
           | bar.
        
       | Nursie wrote:
       | Yeah this doesn't feel "Fair" to me. It would likely reduce the
       | scalping problem, sure, but it also introduces a whole lot of
       | "Well this is the price I want to pay, but what if it sells out?
       | Should I stretch and pay more?" type feelings.
       | 
       | Maybe scalpers get in around this "stretch" point and then when
       | there are no tickets left at all, people realise they really want
       | to go and stretch a bit further to buy from the scalper.
       | 
       | As others have pointed out too - this really selects for wealth.
       | As someone with a decent income, I might get to go and see all my
       | favourite bands, but lower income folks might be priced out of
       | the market entirely (which they already are by scalpers to a
       | greater or lesser extent).
        
       | allanrbo wrote:
       | Or how about a lottery system. You get an email if you win the
       | privilege of buying a tickets. Tickets are named and require ID
       | check, to prevent scalpers. If you are unable to go, your ticket
       | just goes back to the lottery pool.
        
         | judge2020 wrote:
         | They had a Verified Fan system to limit how many could purchase
         | during a presale, but all that really required was being signed
         | up for Taylor's email list and having purchased a Midnights CD
         | from her online store.
         | 
         | I think they messed up here by only running one fan presale,
         | since it made them predict how many tickets each person with a
         | code would actually purchase. They probably underestimated this
         | number (eg. from people tagging along with their friend who got
         | into the presale), so they ended up selling way more than they
         | thought they would. I suspect this because, at one point, I had
         | 16k people in front of me for 1 night at Mercedes-Benz[0],
         | which is a lot given concert capacity is probably around 50k.
         | 
         | With a two-wave presale (or even "verified fan presale only"),
         | you can put out tickets in even smaller waves and continuously
         | evaluate how many you're giving out based on demand and order
         | ticket quantities.
         | 
         | 0: while the queue-it frontend was set up to hide any number
         | above 2,000, the API faithfully showed the actual amount of
         | clients ahead of you in line.
        
         | judge2020 wrote:
         | > If you are unable to go, your ticket just goes back to the
         | lottery pool.
         | 
         | This is tough to enforce unless you have a "1/10th extra fee if
         | you don't show up" policy or allow refunds.
        
           | allanrbo wrote:
           | Oh yea I meant they go back to the pool and a refund is
           | issued. This is of course utopic. Just a dreaming about what
           | the most customer friendly and fair system might look like.
           | Will probably never be aligned with what maximizes the profit
           | of TicketMaster.
        
       | duped wrote:
       | Something not talked about here is that there's a finite number
       | of seats that can be sold for all the tours in the year.
       | 
       | At a smaller scale, look at Broadway productions. There are 41
       | "broadway" theaters in New York, each with between 500-2000 seats
       | performing 8 shows each week. Ballparking because I don't have
       | the exact numbers, that's a total number of tickets you can sell
       | of under about 350,000 tickets for all broadway shows that can be
       | sold each year. Even if you include all the touring and local
       | productions of shows in cities, there are not enough theaters to
       | meet the demand for live musicals and plays (and while locally,
       | shows will underperform and not sell out, and there are periods
       | of downtime between shows changing, it's still capped).
       | 
       | Now these massive tours are limited in a similar way. There are
       | only a few dozen arenas that can seat tens of thousands of people
       | year round, and only so many nights they can operate. But unlike
       | those shows, a single production team can't "own" a venue for
       | months at a time. So they need to tour, which is about the most
       | expensive way to get a production of that scale off the ground.
       | Moving a production and staffing it throughout a tour is so
       | expensive that guaranteeing the endeavor is profitable is still
       | difficult - many of the "biggest" tours with sellout crowds
       | across the country have been financial disasters.
       | 
       | Basically my point is that the issue isn't just in fairness in
       | ticket sales. It's lack of venues. Which makes sense. If we had
       | cities operate like Las Vegas, and have venues that put on high
       | profile shows for months at a time with residencies, the access
       | to the shows might be (paradoxically) improved despite being
       | hyper local. If you can guarantee a low risk/profitable
       | production and rely on people traveling to the show (which many
       | do! look at broadway - people can and do see shows affordably
       | with the highest cost being the plane ticket) then the problem
       | might be better mitigated. Or maybe not. I'm not an economist,
       | but the point is that the supply problem goes a lot deeper than
       | people trying to buy tickets at the same time.
        
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