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They could be engaging in a form of market making, where they buy tickets that are near certain to be sold so that sellers feel good about listing on their site
by zeroCalories 3y ago
They could be engaging in a form of market making, where they buy tickets that are near certain to be sold so that sellers feel good about listing on their site. I don't know about their customers' behavior, but I imagine many buyers buy at the last moment, and sellers feel anxious wondering if they will be able to sell, making them look for other platforms.
- lq9AJ8yrfs 3y agoThis. Plus different sellers have different motivations and different pricing strategies. Stubhub based on their volume has a sense of where the market is, and if they see a seller underpricing versus what Stubhub thinks the ticket will sell for, they may swoop in and try to capture some of the upside. There's no such thing as a ticker feed for the resale markets -- the market is characterized by "imperfect information". Artists and venues making it hard to buy and sell basically widens the spread for the secondaries to play with.
- hotpotamus 3y agoI never thought about it, but I suppose a concert ticket is similar to a futures contract. I'm sure some fintech whiz-kids figured that out years ago and have been at work figuring out how to make money on yet another market.