Swift was no bystander to Tuesday’s meltdown. Like a growing number of popular entertainers and businesses, she and her representatives chose in advance to address what she knew would be huge demand through dynamic pricing. Associated before now mainly with airline tickets, hotel rooms, and Uber rides, dynamic pricing is a mechanism where the cost of something rises or falls within a short time span according to demand. Dynamic pricing usually works fairly well, but when supply and demand get seriously out of whack, things can go haywire.
Tuesday’s Taylor Swift sale was for a reserved segment of available concert seats sold in advance of other seats through Ticketmaster’s
dynamic pricing system. Ticketmaster wasn’t the first to apply dynamic pricing to live performances: Broadway theaters have for decades been selling high-priced premium seats way up front in the orchestra. And
according to Ticketmaster, the company never sells seats in this manner without explicit consent from the performing artist. If this person doesn’t want Ticketmaster to sell premium seats, Ticketmaster doesn’t do so.