Concert ticket pricing has become increasingly sophisticated in recent decades, attracting significant popular attention. Economists have long studied key questions in this space: Why have concert tickets become so expensive? Why is ticket scalping so prevalent? However, less focus has been given to understanding how musicians set their ticket prices. This is particularly relevant given the growing complexity of modern ticket pricing.
My research examines long-term trends in concert ticket prices and investigates whether these changes reflect strategic decisions by artists in response to consumer preferences. One major shift in ticketing strategies has been the increasing use of tiered pricing, known in economics as second-degree price discrimination. This means that instead of offering a single ticket price, artists now provide a range of ticket types that vary based on factors such as seating location and access to additional perks. The goal is to allow consumers to choose the option that best matches their preferences and willingness to pay, while allowing musicians to increase the revenue they earn from concerts.
By analyzing data from hundreds of thousands of concerts over the past two decades, I have identified three key trends in ticket pricing:
- More Artists Are Using Tiered Pricing
Over time, both superstar and non-superstar musicians have increasingly adopted tiered pricing strategies. - The Intensity of Tiered Pricing Has Increased
Not only are artists using tiered pricing more often, but the extent of price differentiation between ticket categories has also grown. - The Gap Between Cheapest and Most Expensive Tickets Is Growing
While inflation-adjusted prices for the most affordable tickets have remained relatively stable, the highest-priced tickets have surged. This means that premium tickets are becoming more expensive, but budget-friendly options are still available. Ultimately, this explains the increased intensity in tiered pricing.
Why Are Some Tickets So Expensive?
One major factor behind rising premium ticket prices is the relationship between ticket price elasticity and seating location. In simple terms, price elasticity refers to how sensitive consumers are to changes in price. My research shows that consumer price sensitivity varies with distance from stage; consumers are relatively insensitive to price increases for tickets nearer the stage, but become increasingly sensitive the further away from the stage that a ticket allows access to. Furthermore, my research shows that consumers substitute between different areas of a venue in an asymmetrical fashion. That is, they respond to higher ticket prices for stage-adjacent areas by buying tickets further from the stage, whereas they instead decide not to attend a concert when similar price increases are pushed through for venue areas that are furthest from the stage. This pattern helps explain some of the observed trends in ticket prices; concert organizers need to maintain relatively low prices for the tickets offering access far from the stage to ensure venues are filled, but can raise the prices of tickets close to the stage substantially before risking unsold tickets.
Another important driver of price increases is the proliferation of VIP ticket packages. These bundles offer exclusive perks such as artist meet-and-greets, special merchandise, and early access to the venue. My research shows that many fans derive substantial value from these offerings, which allows musicians to charge a premium for them. This strategy enables artists to capture additional revenue from their most enthusiastic fans, but also helps to explain why ticket prices have been increasing so dramatically for the most valuable offerings.
A more recent development in ticket pricing is the adoption of dynamic pricing, where ticket prices fluctuate based on real-time demand. This approach, already common in the airline and hotel industries, aims to set prices as close as possible to what individual consumers are willing to pay. Dynamic pricing has become more widespread since 2015, when it was introduced as an anti-scalping tool. My research suggests that dynamic pricing may have also contributed to an increase in the proportion of sold ticket capacity for the most popular artists.
In theory, dynamic pricing can help reduce ticket scalping by ensuring that artists, rather than resellers, capture the full value of high-demand tickets. However, it remains controversial because it can lead to unpredictable price spikes, frustrating fans who may feel priced out of events.
What Does This Mean for Fans and Policymakers?
The findings from my research suggest several key takeaways:
- Concert Pricing Reflects Consumer Demand
The rise in premium ticket prices is arguably largely a response to consumer willingness to pay for better seating and exclusive experiences. Artists are leveraging tiered and bundle pricing strategies to increase revenue without eliminating budget-friendly options. - Fairness and Transparency in Ticketing
While ticket prices have risen at the high end, the availability of affordable tickets suggests that concerns about fairness may be overstated. However, policymakers and industry leaders might consider promoting clearer pricing structures and limiting excessive service fees to ensure transparency in ticketing.
Overall, the trends in concert ticket pricing indicate a shift toward more personalized and flexible pricing strategies. While these changes benefit artists financially, they also offer fans a wider range of choices, allowing them to decide how much they are willing to pay for their concert experience. As pricing models continue to evolve, ongoing research will be essential in understanding their long-term impact on the live music industry.
About the article
Thompson, D (2024). Front row or backstage? Evidence on concert ticket preferences from a discrete choice experiment. J Cult Econ 48, 463–491, https://doi.org/10.1007/s10824-024-09512-2
Thompson, D. (2025). The evolution of ticket pricing strategies in the North American concert industry: evidence from two decades of data. Applied Economics, 1–17. https://doi.org/10.1080/00036846.2025.2464817
About the author
Dylan Thompson is an Assistant Professor in the Arts and Culture Studies Department at Erasmus University Rotterdam
About the image
Anirudh Koul, Rammstein Concert Crowd with Devil Horns, via Flickr
