Graduation Year

2016

Date of Submission

4-2016

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Richard Burdekin

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© 2016 Julian Perez

Abstract

While the majority of the literature on secondary markets for tickets in the entertainment industry focuses on concerts and sporting events, this study aims to shed light specifically on the music festival resale market. Music festivals have risen in prominence in recent years, particularly among millennials, during the time that the internet has dramatically facilitated the resale of tickets through online marketplaces. With many of the top festivals selling out rapidly, a great deal of music fans turn to secondary markets for tickets. However, very little is known about the behavior of secondary markets for music festivals due to information not being readily available to the public. This study uses demand-side data including transaction prices and quantities acquired from one of the largest online secondary ticket marketplaces to examine market behavior. My findings show that on average, prices decline for music festivals as they approach, but that there are years for certain festivals where this isn’t the case. Other results show that markets for festivals with multiple weekends operate differently and that special artist performances such as band reunions can have a significant positive effect on consumer demand. Lastly, the majority of all ticket sales are found to take place in the final 30 days before music festivals transpire.

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