[SOLVED] You are undoubtedly aware that most of the tickets that you purchase for rock concerts

Explanation Company TM is a ticket distribution company that distributes tickets for various events of various musicians, actors, sports players, and more, around the country. The company is known as the premier ticket distribution company in the country, and thus the company has long established itself as a dominant market player in the ticketing industry. Along with their main service of distributing tickets for events, Company TM charges extra fees such as a service charge, processing charge, and venue or facility charges. Such fees have allowed Company TM to charge relatively higher prices for their tickets.

Users and critics of Company TM's service often cite that the high prices of tickets from Company TM stems from the fact that Company TM virtually has very little competitors in the ticket distribution market. Company TM has been reported to have control over 80% of the ticket industry [1]. The low number of competitors in the ticket distribution market indicates that Company TM has considerably high market power in the industry, and thus has the ability to influence prices in their own terms. Therefore, it can be assumed that Company TM does use its market power to price their services particularly high.

Consumers have very little alternatives to the services provided by Company TM. One way that Company TM controls the market is by providing exclusive contracts to venues and event holders. These parties often report that they go along with such contracts despite disliking them due to fear of being blacklisted in the industry or losing potential revenue and sales [2]. As such, any venue or event holder that use ticketing services other than of Company TM's may struggle with finding a successful reach as they would with Company TM. The issue of Company TM's high market power has been so rampant, that even as of June 2021, lawmakers of the country have been attempting to urge the president to investigate further on the company's monopoly [3].

*** Works Cited 1. "Angry About Tickets? Here's Who To Blame." Forbes, www.forbes.com/2009/02/11/ticketmaster-live-nation-tickets-concerts-business-media_0211_tickets.html?sh=3e60e0fa6300 . Accessed 16 June 2021. 2. TicketNews. "Https://Www.Ticketnews.Com/2019/01/Hawaii-End-Ticketmaster-Contracting-Agreements/." TicketNews, 31 Jan. 2019, www.ticketnews.com/2019/01/hawaii-end-ticketmaster-contracting-agreements 3. Steigrad, Alexandra. "US Lawmakers Urge Biden to Probe Live Nation-Ticketmaster 'Monopoly.'" New York Post, 20 Apr. 2021, nypost.com/2021/04/20/biden-urged-to-probe-live-nation-ticketmaster-monopoly

Sample Response The high prices of services from Company TM is commonly attributed to the fact that the company has very few competitors in the ticket distribution market, controlling over 80% of the ticket industry. Such attributes indicate that Company TM has considerably high market power in the industry, and uses its market power to price their services particularly high.

Consumers have very little alternatives to the services provided by Company TM. Any venue or event holder that use ticketing services other than of Company TM's may struggle with finding a successful reach as they would with Company TM. The issue of Company TM's high market power has been so rampant that several efforts have been made by the government to investigate further on the monopoly Company TM has created.