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« Digging into the details: understanding companies from the outside | Main | Definitely a wonderful digital world »

August 17, 2007


Mike S.

Robi, great post! I dig the deep dive concept, its right up my alley too. Right out of B-School case study.

Ben Hoyt

I'm not sure that I'm completely sold on your worst-case scenario, being a decision by eBay to buy-out Viagogo in order to get their access to the European market. Isn't there a realistic scenario in which eBay decides that they would rather pay the necessary expense of having Stubhub compete directly with Viagogo in the European market, than spending the money it would take to buy them out?

Also, you and I have discussed this on the phone, but I figured that I'd mention it here. I'm really not convinced that these two companies (Viagogo and Stubhub) are engaged in practices that are really in the best interest of fans in the long run. I realize that, in theory, they are increasing the efficiency of the market for tickets, which probably is a good thing in the long run. However, with the 25% cut that they are taking, they are also screwing with that market in a non-trivial way. Also, I think that by creating this market they are simply encouraging and facilitating scalpers, which i find onerous and inefficient, as well.

Finally, I think that you should be careful with the assumption that simply because someone is willing to pay more for a ticket means that they WANT it more. This would be true in a world of equal disposable incomes, but creating a system in which ticket prices rise (and they will rise, this system isn't designed to help them fall), simply means fewer eager (but poor) young high school and college kids get to buy tickets and more wealthy, affluent older people do. There's something fundamentally sad about that, to me...


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