Ticket Sniping

INTRODUCTION ................................................................................... 243 BACKGROUND ...................................................................................... 245 I. THE ECONOMICS OF TICKET SNIPING ................................... 248 A. Long-term Revenue Maximization ....................................... 249 B. Inability to Price Discriminate .............................................. 250 C. Promoter Insider Trading ...................................................... 251 D. Partnership Agreements ......................................................... 252 E. Desire for Sellouts .................................................................. 253 F. Altruistic Pricing Schemes ...................................................... 253 II. THE LITIGATION RESPONSE ................................................... 254 A. The Litigation Impetus ......................................................... 254 B. Ticketmaster’s Litigation ....................................................... 254 C. Boaz Lissauer’s Class Action Suit ........................................... 263 III. THE LEGISLATIVE RESPONSE ................................................. 265 A. The Nature of the Consumers’ Harm ...................................... 265 B. The Legislation ..................................................................... 269 C. Enforcement Problems ........................................................... 270 D. The Law’s Failure................................................................. 273 IV. THE MARKET RESPONSES ....................................................... 274 CONCLUSION ....................................................................................... 276