Artist‐Related Determinants of Music Concert Prices

• DOI: 10.1002/mar.20726
• Publication Date: 2014-07-09T17:26:33Z
• Authors: Alain Decrop; Maud Derbaix
• Keywords: Popularity; Ticket; Monopolistic competition; Fanaticism

ABSTRACT Ticket prices of pop/rock concerts have risen considerably over the last decade. Reasons for this growth are debatable: monopolistic position one concert promoter, development mass culture and fanaticism, or changes in artists’ business model due to illegal downloading. This empirical paper identifies artist‐related variables that play a significant role pricing music concerts. Referring economic principles (e.g., transaction costs, economies scale) psychological theories preferences, signaling), six hypotheses were tested using unique database covering period seven years containing information on 2687 organized Belgium as well performing artists. Results show career, nationality, their popularity major determinants ticket prices.