Ticket scalping goes mainstream

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Ticket scalping goes mainstream

• By Jennifer Mulrean

http//moneycentral.msn.com/content/Savinganddebt/
Finddealsonline/P58727.asp
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Sold out!

• Sold out Two words that strike fear in the heart
  of devoted fans everywhere. Or at least they used
  to.
• Most Net-savvy people know you don't have to
  stand on a street corner with a hand-lettered
  sign anymore to land tickets to sold-out events.
  You can turn to your keyboard for entry to
  everything from rock concerts and Broadway
  musicals to National Hockey League games.
• To attract more buyers, a number of primary
  ticketing companies are now trying to legitimize
  the business. To do so, they need you to forget
  that back-alley connotation.
• Historically, ticket brokers and ticket scalpers
  have been sort of lumped in with the dark side of
  life, says Carl Thomas, Tickets.coms executive
  vice president of sales and marketing. But in
  the real world, theyre in business serving a
  business need every day.

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But is it legal?

• Many consumers are wary because of a labyrinth of
  state and municipal regulations on reselling
  tickets. It's hard to know if you're breaking
  laws by buying or reselling a ticket.
• Its legal to resell tickets in all 50 states,
  but in some instances there may be certain rules
  and regulations to follow, asserts StubHubs
  cofounder and president Eric Baker.
• Most states base their ticket-scalping laws on
  the location of the venue, not the location of
  the ticket buyer and seller. This is true in New
  Jersey, where you must either be a licensed
  broker to resell tickets, or you must resell a
  ticket for no more than 20 or 3 more than its
  face value, whichever is greater, according to
  the state's Division of Consumer Affairs.
• While it may feel anonymous to resell tickets
  online, the office has brought charges against
  individuals for not abiding by the
  ticket-scalping law. Just this year, they settled
  with one man for 20,000 and they have similar
  cases going all the time.

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Sorting through fees and choices

• Peer-to-peer ticketing This is sometimes called
  ticket exchange -- or even fan-to-fan
  ticketing.
• Online auctions In addition to fan-to-fan
  resales, auctions are also an avenue for some
  brokers to resell tickets. eBay and Yahoo!
  Auctions are among the biggest names in the
  auction arena.
• General purchases While you cant resell tickets
  at Tickets.com, you can buy secondary tickets to
  all kinds of events through its Premier Ticket
  Window.

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Putting them to the test
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The Economics
S
D
Is this Bad?
Price

• At an event we have capacity.
• Set a price at 20.
• We have excess demand.
• Some numbers of people are willing to pay more
  than 20.
• How much can scalpers make?

50
Scalpers Profits
20
Quantity