The federal government’s new push to regulate concert ticket prices may backfire, leaving fans paying the same high prices while adding bureaucratic hurdles to the ticket-buying process.
At a Glance
- The DOJ and FTC are investigating “unfair and anticompetitive practices” in live event ticketing
- President Trump’s executive order directs enforcement of ticket sales laws and targets high fees from middlemen
- Economists argue high ticket prices reflect consumer demand, not corporate greed
- Experts warn that antitrust enforcement won’t lower market-clearing prices when demand exceeds supply
Federal Regulators Target Concert Ticket Pricing
The Department of Justice and Federal Trade Commission have launched a joint effort seeking public input on what they describe as “unfair and anticompetitive practices in live ticketing.” This investigation follows an executive order from President Donald Trump that directs the FTC to enforce the Better Online Ticket Sales Act and competition laws in the concert industry. The 2016 law specifically prohibits the use of automated bots and other technologies designed to bypass ticket purchasing limits imposed by retailers.
The government’s investigation targets what many consumers view as a broken system, with tickets for popular shows selling out in minutes only to reappear on resale sites at dramatically inflated prices. Regulators appear particularly focused on high fees charged by various middlemen in the ticket-selling process. However, economists and market analysts are questioning whether government intervention will actually make tickets more affordable for average Americans.
Basic Economics vs. Government Regulation
Several economists have pushed back against the notion that ticket prices are artificially inflated by greedy corporations. Instead, they point to the fundamental economic principle of supply and demand. When millions of fans want to see a limited number of performances, prices naturally rise to what the market will bear. The core issue isn’t monopolistic behavior but rather the reality that demand far exceeds supply for certain artists and events.
“It’s hard to see how the original sellers can be charged with behaving monopolistically since the entire thing begins with [them] charging prices that are too low.”, said Don Boudreaux.
The executive order specifically criticizes ticket resellers and scalpers for imposing high fees and driving up prices. However, market economists argue these middlemen actually serve an important function by allocating tickets to those who value them most. When initial ticket prices are set below market value—a common practice as artists often want to appear accessible to fans—resellers move prices toward their true market-clearing level.
Competing Visions for Concert Ticketing
Government officials insist their goal is creating a fairer marketplace that benefits both performers and audiences. “Competitive live entertainment markets should deliver value to artists and fans alike,” stated Abigail Slater from the DOJ’s antitrust division. Meanwhile, the FTC’s Andrew Ferguson highlighted public frustration, noting that “Americans feel like they are being priced out of live entertainment by scalpers, bots, and other unfair and deceptive practices.”
“Americans feel like they are being priced out of live entertainment by scalpers, bots, and other unfair and deceptive practices.”, said Andrew Ferguson.
Brian Albrecht, chief economist at the FTC, offers a more nuanced view. He suggests that secondary markets make ticket distribution more auction-like, which isn’t inherently anticompetitive. This perspective acknowledges that in a free market, scarce goods tend to flow toward those willing to pay the most. Artists and venues could capture more of this value themselves by setting higher initial prices, but many choose not to for fear of appearing greedy to their fan base.
The Reality of Market Forces
The uncomfortable truth for concert-goers is that antitrust enforcement and new regulations are unlikely to significantly reduce prices for the most in-demand shows. When millions of fans want to see Taylor Swift, Bruce Springsteen, or Beyoncé in venues that seat thousands, high prices are inevitable regardless of the sales mechanism. Government intervention might change who profits from those high prices, but it won’t fundamentally alter the supply-demand imbalance.
For consumers frustrated by high concert prices, the most effective solutions may come from the market itself. Artists can choose to perform more shows, use larger venues, implement verified fan programs, or experiment with lottery systems for ticket distribution. Some performers have also explored price discrimination strategies, offering different tiers of tickets at various price points to accommodate fans with different budgets.
While government regulation may eliminate some bad actors who use fraudulent methods to acquire tickets, it’s unlikely to make high-demand concerts substantially more affordable. The fundamental economic reality remains: when millions want something that only thousands can have, prices will reflect that scarcity—regardless of who’s setting them.