Some states have made the practice of scalping tickets illeg

Some states have made the practice of scalping tickets illegal. That is, re-selling tickets to either concert of sporting events to by the original ticket holder to a third party at a price in excess of the ticket\'s face value. From an economic perspective, should price controls [or a maximum vricel be vlace on these ticket re-sales?

Solution

Ticket scalping is definitely an unfair trade practice. In legal perspective is should not be have any legality.

In economic perspective it has a valuable impact on the economy of any state. It provides easy availability of tickets to the consumers, and also they sell the tickets at a price which is more than the stated price. Thinking economically in this case the consumers’ surplus will be less. However, these practices are unfair because it is a problem for the consumers, promoters, organizers, artists, etc.

The state legislatures till now are not able to put any kind of sanctions on the resale of tickets at a higher price. The state must prohibit the resale of tickets at an unfair price. It is harassment for the consumers who are able to pay the fair price but are not able to purchase in inflated price. The state also can instruct the show organizer to fix a fair price of the show that cannot be inflated by the ticket scalpers. Also they can print a statutory warning on the ticket regarding the reselling of tickets. If the state creates a kind of awareness between the organizers, promoters, artists, consumers, etc, can get maximum benefit of the event.