You're missing the unstated corollary to this, or any other discussion of scalpers: 'and prices have to be "reasonable" for whatever demographic we claim to serve or would prefer to serve'.
Hence, you get discussions of young girl singers unhappy that all these icky old men are paying hundreds of dollars for the tickets to her concert, even though the market doesn't clear at the $40 or $60 her preteen fans can spare. (And if an organization does let the price float to its natural level of hundreds of dollars, then you get shocked articles in the newspaper on 'ticket inflation' and angry letters to the editor about how in their day you could get in for a nickel...)
And if an organization does let the price float to its natural level of hundreds of dollars, then you get shocked articles in the newspaper on 'ticket inflation' and angry letters to the editor about how in their day you could get in for a nickel...
Would public hostility really result in lower profits than just selling at the market equilibrium price? If I did not know about the actual amount of scalping that happen, I would be very suprised to learn that tickets are priced so far below equilibrium.
Here's the new thread for posting quotes, with the usual rules: