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A Graphical Analysis of "Scalping": A Reply

University of South Alabama

Swofford (1999) discussed three cases when ticket scalping or other reselling might arise. These cases are reviewed in light of Spindler’s (2003) observation that a perfect price-discriminating ticket scalper could capture all the revenue from the all or none demand curve. Such a price discriminator would have a symbiotic relationship benefiting the original producer of the product. However, the ticket scalper would still have a parasitic relationship with a producer identified more with the product, as such a producer would have customer goodwill in its dynamic revenue function. The original producing firm with goodwill as an argument in its dynamic revenue function might still be a source of agitation for laws against ticket scalping.

Key Words: ticket scalping • consumer surplus • all-or-none demand

Public Finance Review, Vol. 31, No. 6, 700-704 (2003)
DOI: 10.1177/1091142103254727


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