
Matt and Andy Blunt would reserve this space for millionaires
P-D Political Fix:
As the Legislature’s adjournment of May 18 nears, dying bills often hitch a ride with bills heading toward passage.
That practice helps explain why ticket scalping would no longer be a crime under a bill the House passed and sent to the governor on Thursday.
Lobbyist Andy Blunt, the governor’s brother, has been seeking to relax the scalping law for his client, Ticketmaster, which wants to resell tickets over the Internet.
It’s time for a basic economics lesson, and please don’t fall asleep on me. It’s relevant to why repealing this law is a bad idea.
The price at which a seller is willing to sell something is the same as one where the buyer is willing to purchase the good or service is called the equilibrium price.
When there are high-profile sporting or concert events, e.g. Cardinals playoff or World Series games, there are a very limited number of seats, but a whole lot of people who want to buy tickets.
Therefore, left to the market, the price for a World Series ticket would be excessively high, so high that hardly anyone, save the 50,000 richest St. Louisans, could afford them.
To give the average person a chance to buy World Series tickets, team owners will price them far below market value. The tradeoff of setting a price below equilibrium is that there has to be a way to ration them, because at that low price, many more people are in the market than tickets available. Usually, the rationing solution involves long lines at the box office, or online availability for about ten minutes, or a ticket lottery.
In order to enforce the spirit of this policy, the state of Missouri prohibits the sale of tickets to any sporting or concert event at a price higher than the face value, anywhere in the state. The purpose of this law is to prevent a secondary black market that would virtually, in economic terms, push the “market” price of tickets back up to the undesirable equilibrium.
For if that happens, the average person is priced back out of the market.
If this bill is passed and signed into law, the secondary market, and all its vicissitudes, is legalized. And Gov. Blunt’s brother’s client stands to make a lot of money.
As an aside, you probably see or hear ads for ticket brokers that are “a short distance” from the stadium, where one can buy hard-to-find tickets for events and concerts. That “short distance” requires crossing a bridge, because those establishments are in Illinois, which does not ban ticket scalping.