Institute of Economic Affairs report: The case for secondary markets
The primary ticket market is dysfunctional and it’s the secondary market, which is actually correcting these defects. This is one of the key findings of a report on the secondary market that was released this week by the Institute of Economic Affairs, based in London.
The report, written by the IEA’s Head of Education, Dr. Stephen Davies called on the British Government to ignore calls for price caps or other regulation on the secondary market, something that we here at StubHub Concourse fully support.
Davies also highlighted that the secondary market is not actually as large as some may think. He showed that only a very small percentage of a venue that sells on secondary sites like StubHub, compared to the large percentages that are often held back for VIPs, sponsors, corporates or competitions.
Commenting on the report, Jamie Whyte, Director of Research at the Institute of Economic Affairs, said: “The reselling of tickets is not a new phenomenon, and those who buy secondary tickets are doing so entirely voluntarily. The primary market – dominated by a small number of players – is dysfunctional. The secondary market is correcting its defects, so that tickets get into the hands of those who value them the most. It is quicker and more responsive, more transparent and more efficient. Where problems exist, they are best solved by the enforcement of existing laws, not by kneejerk price caps and regulations.”
You can read the full report by Dr Stephen Davies here.