Why Doesn't Taylor Swift Charge More for Tickets?

She made a LOT of money, but scalpers made a lot too

Taylor Swift is one of the richest people in the world, and her Era’s Tour was one of the most successful concert tours of all time. She certainly made a lot of money from the tour, but why didn’t Swift initially charge more for tickets, knowing how much demand there would be? Let’s dive into the economic and behavioral factors behind her pricing strategy.

The Economics of Ticket Pricing

Taylor Swift set ticket prices between $50 and $200, a figure that’s objectively low given the massive demand. This pricing was well below what economists call the equilibrium price, where supply meets demand without a shortage.

For instance, secondary market platforms listed even poor-view seats for $400 or more, with premium seats soaring to thousands or tens of thousands of dollars.

Basic economic principles explain what happened next. When prices are set too low for a product with limited supply, shortages occur. Fans unable to secure tickets at face value turned to resale platforms, where scarcity drove prices sky-high.

While Swift may have had a reason for the low pricing - getting tickets to fans at a lower price or preserving her brand, that meant that ticket scalpers got to reap enormous benefits - profits that could have instead gone to Taylor herself.

The Role of Behavioral Economics

Behavioral economics adds another layer to the story. Fans who managed to get tickets may value them more than their initial willingness to pay, a phenomenon called the "endowment effect." Once tickets are in hand, the emotional attachment and anticipation of the experience make them less likely to sell—even at a premium.

For more, check out the video:

Curious to learn more about the economics behind this phenomenon? Watch the full video for a deeper dive into Taylor Swift’s Era’s Tour pricing and how basic and behavioral economics shape the concert ticket market.