question archive Ticketmaster Corp
Ticketmaster Corp
Subject:EconomicsPrice: Bought3
Ticketmaster Corp. used an Internet auction to sell tickets for a Sting concert (Leslie Walker, “Auctions Could Set Ticket Prices for Future Events,” San Francisco Chronicle, October 13, 2003, E5).
a. The floor seats were auctioned in a uniform price format where all winning bidders paid the same amount: the lowest bid ($90) at which all the seats were sold. Is this price discrimination? If so, what type?
b. Suppose, instead, that each ticket was sold at the bid price to the highest bidder. Is this price discrimination? If so, what type?
