Resale and Rent-Seeking: An Application to Ticket Markets*

  title={Resale and Rent-Seeking: An Application to Ticket Markets*},
  author={Phillip Leslie and Alan T. Sorensen},
  journal={The Review of Economic Studies},
We estimate an equilibrium model of ticket resale in which consumers' and brokers' decisions in the primary market reflect rational expectations about the resale market. Estimation is based on a unique dataset that merges transaction details from both the primary and secondary markets for tickets to major rock concerts. In our model, the presence of a resale market permits tickets to be traded from low-value to high-value consumers, but it also stimulates costly efforts by consumers and brokers… 

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