(Random numbers to illustrate a point:) If the symphony was an auction system, tickets might sell for $110 each. It fills up with a $100 each first-come system

(Random numbers to illustrate a point:) If the symphony was an auction system, tickets might sell for $110 each. It fills up with a $100 each first-come system, most people who want tickets can get them, tickets are sold at only a $10 discount of auction value, and it "feels fair." The first-come-first-serve system works well for the symphony. If the pop-star concert was an auction system, tickets might sell for $999 each. With first-come-first-serve and a set $100 price, each ticket is sold at a $899 discount of auction value. Moreover, most people who want tickets cannot get them directly as they sell out instantly because of the relatively steep discount (90% discount vs 9% discount). The first-come-first-serve system only works well when prices are set near a market-clearing value, like with the symphony. As stated elsewhere in the thread, people would get super upset at $999 tickets. They would think "those greedy pop-stars price tickets way too high, it's so unfair." So pop-stars are unwilling to set prices at the high market-clearing value, and use the first-come-first-serve with way underpriced tickets (getting some money back by having agreements with scalpers or Ticketmaster). Demand way exceeds supply, tickets sell out instantly (mostly to scalpers). Most fans never get to see the concert at the "fair-seeming" $100 price and are upset at "those nasty scalpers" and pay near $1000 to see the concert anyways. But the scalpers (or Ticketmaster) are the ones whose reputations are harmed, saving the artists' reputations.