Supply Chains
Paper Session
Monday, Jan. 5, 2026 10:15 AM - 12:15 PM (EST)
- Chair: Alexander MacKay, University of Virginia
Quantifying Foreclosure: The Live Nation -- Ticketmaster Merger
Abstract
In 2010, Live Nation—the largest promoter in the live music industry—merged with Ticketmaster, the leading primary ticketing agency. Following the merger, numerous complaints emerged alleging that independent venues were pressured to contract with Ticketmaster in order to access concerts promoted by Live Nation. We develop a methodology that quantifies the extent of foreclosure against non-Ticketmaster venues without requiring data on profit allocations among stakeholders. Specifically, we use a comprehensive dataset on artists, concerts, and venues to estimate a model of promoters' venue choices and an event's revenue generating process, allowing for limited consideration sets. Our analysis indicates that, post-merger, the probability that Live Nation foreclosed non-Ticketmaster venues was approximately 11% for each concert. Moreover, foreclosure accounted for roughly 65% of the merger's combined impact on Live Nation's shift toward Ticketmaster-contracted venues. If Live Nation had fully foreclosed non-Ticketmaster venues, the short-run cost would have amounted to about 15% of its realized box office revenue—providing a conservative estimate of Live Nation's potential long-term gains from such conduct. These findings reveal a novel channel for anti-competitive harm from vertical integration, whereby the affected parties—independent venues—do not compete directly with Live Nation's promotion services or Ticketmaster's ticketing operations.Vertical Control and Retail Price Stability
Abstract
[no abstract yet]Markups and Cost Pass-through Along the Supply Chain
Abstract
We study markups and pricing strategies along the supply chain. Our unique dataset combines detailed price and cost information from a large global manufacturer with matched retail prices collected online for the period July 2018 through June 2023. We show that total markups—reflecting the difference between retail prices and production costs—are stable over time, despite the inflationary period at the end of the sample. Along the supply chain, manufacturer and retail markups are negatively correlated. For the most part, we find similar patterns across countries, though there is substantial heterogeneity in the split of markups between the manufacturer and retailers. We propose a model of supply chain pricing behavior that rationalizes key patterns in our data, and we use the model to quantify factors that determine relative bargaining power between the manufacturer and retailers. Finally, we consider the dynamics of cost pass-through. The manufacturer adjusts prices in response to cost shocks more quickly than retailers and appears to more fully incorporate idiosyncratic cost shocks to specific products. Differential pass-through patterns along the supply chain can arise from bargaining power that adjusts dynamically in response to shocks.JEL Classifications
- L2 - Firm Objectives, Organization, and Behavior
- L1 - Market Structure, Firm Strategy, and Market Performance