Date of Award

5-31-2024

Document Type

Honors Project

University Scholars Director

Dr. Joshua Tom

First Advisor/Committee Member

Dr. Geri Mason

Keywords

Ticketmaster, Antitrust, Exclusive Contracts, Competition, Ticketing Industry, Taylor Swift

Abstract

The Eras Tour Verified Fan Sale in 2022 revealed major flaws in the ticket-buying process, which many attributed to Ticketmaster's dominant industry position. The exclusive contracts of Ticketmaster have been their source of gaining a competitive advantage in the ticketing industry, but many have been critical of these contracts for restricting competition in this industry. This research analyzes the effect of the exclusive contracts of the merged Ticketmaster-Live Nation entity on competition in the ticketing industry through the lens of prominent antitrust scholars. Previous literature reveals differing ideas about whether exclusive contracts are an exclusionary practice and literature identifies the need for more economic consideration in antitrust cases. Through applying the thoughts of antitrust scholars to Ticketmaster’s situation, this research aims to provide unique insight into how the competitiveness of exclusive contracts can be evaluated. The ideas of scholars from the Chicago School and New Brandeis movements provide the criteria for analysis of Ticketmaster’s exclusionary contracts. The findings of this research are that Chicago School thinkers would support the idea that Ticketmaster’s exclusive contracts maximize efficiency for consumers and producers and as a result should not be subject to antitrust legislation. The New Brandeis movement would support the idea that the exclusive contracts of Ticketmaster have excluded competitors, which has led to a lack of innovation and product differentiation in the ticketing industry. The conclusion is reached that the New Brandeis account of Ticketmaster’s exclusive contracts effect on competition in the ticketing industry provides the most accurate view of the situation. In addition, the New Brandeis proposal of more regulation, such as issuing an Essential Facilities Doctrine requiring Ticketmaster to license their ticketing software and database to other companies, would be the most effective solution moving forward.

Comments

A project submitted in partial fulfillment of the requirements of the University Scholars Honors Program.

Copyright Status

http://rightsstatements.org/vocab/InC-NC/1.0/

Additional Rights Information

Copyright held by author.

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