ECO6140 AU ECO6140 Managerial Economics – Description
I’m working on a economics discussion question in Managerial Economics class. The discussion needs to be roughly 300-400 words in response.
**Here is the information of the question**:
The merger between Ticketmaster and Live Nation was approved with stipulations by the Department of Justice back in January 2010. Reuters reported that Live Nation maintain 49.99% of the combined company; Ticketmaster, 50.01%. At the Ticketmaster website, the benefits of the merger was stated:
“We believe that the merger creates a diversified company with a great selling platform for artists and a stronger financial profile. The new company will provide a more direct relationship between fans and artists. More importantly, fans will benefit through more ticketing and seating options, reduced pressure on ticket prices and more direct access to their favorite artist.”
Over the years, the monopoly power of this merger grew and most recently, there was an outcry over the outrageous ticket price of upwards of $5,000 to attend Bruce Springsteen concert tour and of other celebrities concerts and performances as reported by RollingStone. Why are the tickets over-priced? The answer is “dynamic pricing” strategy adopted by the Ticketmaster company whereby ticket prices are determined in real time based on demand by ticket buyers as explained in a NPR segment this past Tue, August 31st, 2022. Alongside fans and music critics, New Jersey Democratic Representative Bill Pascrell Jr. has called out to the CEO of Live Nation Entertainment to provide transparency to the heavily marked-up ticket prices as reported by TheMusicUniverse.
**Here is the question**;
Recall the , highlight and explain THREE features used by the Ticketmaster-Live Nation merger in further increasing the market share and earning supernormal profits.
**Here is the link for the video**;
**Here is the textbook info**;
Title: Managerial Economics and Business Strategy
Author: Michael R. Baye/Jeffrey T. Prince Publisher: McGraw Hill
Year Published: 2022
Edition: 10th Edition
ISBN: 13: 9781264575435
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