As Taylor Swift’s Eras Tour continues to capture attention and tax ticketing systems around the globe, the ticket resale market is undergoing significant changes. Resale websites are providing fans with quick access to desirable seats while allowing them to easily resell any tickets they can’t use. Recent research has explored the evolution of the ticket resale market and its broader implications beyond just Swift’s fans.
The ticket resale industry has transformed over the years, moving from a disreputable practice to a legitimate, tech-driven sector.
Pnina Feldman, a professor at the University of Virginia’s Darden School of Business, has been investigating this shift and its effects on both consumers and businesses.
Historically, the term “scalper” evoked images of dubious individuals outside event venues selling overpriced tickets. Nowadays, purchasing or reselling tickets is merely a few clicks away on popular platforms like Ticketmaster, StubHub, SeatGeek, and VividSeats.
This significant change raises an intriguing question: Why has ticket reselling transitioned from being frowned upon to becoming widely accepted?
Feldman, who specializes in technology, operations, and management, delves into this issue in her latest research paper. She studies how consumer behavior influences pricing and operational choices, with relevant implications for retail, services, platforms, and policies.
In an interview with The Darden Report, Feldman discussed her insights on the ticket resale market’s evolution.
Feldman noted that the acceptance of ticket reselling, particularly for an artist like Taylor Swift, indicates how ingrained the practice has become. According to her findings, reselling is now a common and beneficial operation for both sellers and consumers, rather than just a “necessary evil.”
When asked about the origins of her research on ticket exchanges and resale markets, Feldman explained that she began by examining the options available to sellers when buyers regret their purchases—known as recourse strategies. She identified two main strategies:
1. Refunds — Returning a purchase for a partial refund after realizing it won’t be used.
2. Reselling — Selling the purchased item, like a ticket, to someone else.
Feldman’s research sought to determine the best selling mechanism and whether all recourse strategies were equal. She questioned whether it was better to simply inform customers that once a purchase was made, they were stuck with it.
Her findings suggest that allowing reselling is far more advantageous than offering no recourse at all and is even preferable to the common refund options.