Herd them together and scalp them Happel, Stephen K, Jennings, Marianne M. Wall Street Journal. (Eastern edition).

New York, N.Y.: Feb 23, 1995. pg. A14 Copyright Dow Jones & Company Inc Feb 23, !!" !"EN#$ %% &ro'b(ed b) t*e o'trageo's pri+es s+a(pers were getting ,or *is +on+ert ti+kets, -art* .rooks de/e(oped a (otter) s)ste0 ,or *is +on+ert *ere. #, )o' stood in (ine (ong eno'g*, )o' *ad a s*ot at t*e 125 ti+kets. 2*en t*e (otter) was +o0p(eted, t*e singer was st'nned to see s+a(pers getting 1533 ,or t*e sa0e seats in t*e se+ondar) 0arket. 4#5/e seen t*e s*ow,4 *e said. 4#t5s not wort* it.4 .'t ,ro0 .roadwa) to t*e 6'per .ow(, it is wort* it. 6+a(pers t*ri/e be+a'se o, t*e de0and ,or (i/e, (i0ited%seating e/ents. &*e) tap a 0arket o, b')ers w*ose ti0e is in s*ort s'pp() b't w*ose 0one) isn5t. 7espite t*e e+ono0i+ ro(e o, s+a(pers, t*e) *a/e been +onsistent() treated as paria*s o/er t*e past +ent'r) in t*e 8.6. 9'rrent() 2: states, t*e 7istri+t o, 9o('0bia, and 0ost 0'ni+ipa(ities wit* pro,essiona( sports ,ran+*ises reg'(ate s+a(ping in so0e wa). 6o0e (aws set 0a;i0'0 ti+ket resa(e pri+es. "t*ers o't(aw s+a(ping at or near t*e e/ent site or re<'ire a +ost() (i+ense to do so. 6ti(( ot*ers (i0it (ega( s+a(ping to +*aritab(e organi=ations. 6'+* 0arket restri+tions are s'pposed to (egis(ate 4,air4 pri+es so t*at t*e 4a/erage4 ,an +an attend, or at (east e(i0inate t*e +ongestion on t*e streets (eading to arenas. .'t *arnessing ,ree enterprise is a ta(( order. 6ooner or (ater so0et*ing *as to gi/e. And d'ring t*e past two weeks it did in a big wa) in *oeni;.

#n response to t*e *ig* (e/e(s o, ti+ket s+a(ping and tra,,i+ +ongestion o'tside t*e A0eri+a 2est Arena, *o0e o, t*e 6'ns basketba(( tea0, t*e 9it) 9o'n+i( passed an ordinan+e ear() t*is 0ont* t*at a((ows s+a(ping, no (i+ense re<'ired, to take p(a+e in a designated area a+ross t*e street ,ro0 t*e 0ain entran+e to t*e arena> e/er)w*ere e(se s+a(ping is sti(( i((ega(. &*'s *oeni; be+a0e t*e ,irst 0'ni+ipa(it) in t*e 8.6. to open() en+o'rage s+a(ping at t*e e/ent site and to +entra(i=e t*e 0arket. &*e inno/ati/e ordinan+e was not passed wit*o't opposition. &*e position o, t*e *oeni; 6'ns and t*eir president and 9E", ?err) 9o(ange(o, was t*at an) ,or0 o, ti+ket s+a(ping not (i+ensed b) t*e Nationa( .asketba(( Asso+iation and t*e 6'ns s*o'(d not be per0itted. &*e 6'ns 0anage0ent, a(ong wit* downtown 0er+*ants, wanted po(i+e to 'se e;isting (aws t*at pro*ibit street /ending wit*o't a (i+ense. @anage0ent (ast )ear *ad been ab(e to estab(is* t*ro'g* a ,edera( +o'rt de+ision t*at a 6'ns season ti+ket *o(der *as p'r+*ased on() a (i+ense ,ro0 t*e 6'ns, and t*is (i+ense +an be re/oked i, t*e ti+kets are so(d abo/e t*eir ,a+e /a('e. &*e po(i+e, w*o pre/io's() ,a/ored (ega(i=ing s+a(ping, sin+e en,or+e0ent was so di,,i+'(t, worried t*at s+',,(es wo'(d be 0ore +o00onp(a+e in a +entra(i=ed 0arket. .'t +iti=ens at t*e p'b(i+ *earing arg'ed t*at peop(e 0ig*t a+t'a(() be sa,er in one spot 'nder t*e wat+*,'( e)e o, t*e po(i+e, and t*at a ,ree 0arket was t*e best wa) to ens're t*at t*e a/erage person +o'(d get good seats. &*e p'b(i+ o't+r) res'(ted in an A%1 /ote ,or t*e ordinan+e. &*e N.A A((%6tar -a0e on Feb. 12 ga/e t*e new *oeni; s+a(pers5 0arket its ,irst r'n. "n ga0e da), t*e po(i+e swept t*ro'g* t*e downtown area in t*e 0orning and iss'ed warnings to s+a(pers not se((ing in t*e designated area. 2it*

t*e s+a(pers gat*ered into a one%stop s*opping ,or'0, b')ers +o'(d easi() gat*er in,or0ation ,ro0 a(( se((ers. 6o0e se((ers si0p() stood passi/e() wit* one or two ti+kets in *and. "t*ers *e(d signs ad/ertising seat (o+ations and pri+es. &*e pro,essiona( traders, wit* (arge n'0bers o, ti+kets, aggressi/e() s*o'ted o't pri+es and 0o/ed t*ro'g* t*e +rowd seeking +'sto0ers. #n tota(, so0e 433 s+a(pers traded in t*e designated area in t*e ,i/e%*o'r period be,ore t*e ga0e> *a(, o, t*e0 were pro,essiona(s, and o, t*e pro,essiona(s at (east 153 were ,ro0 o't o, town. resent were a(( t*e trappings o, a b')ers5 0arket. ri+es ,or 1133 ,a+e%/a('e 'pper%de+k seats t*at so(d ear(ier in t*e week ,or 1453 were ,et+*ing 1333 two *o'rs be,ore t*e ga0e and 1153 at tip%o,,. 6e/ent*%row seats t*at so(d on 6at'rda) ,or 11,333 went ,or 1533 two *o'rs be,ore tip%o,,. "ne pro,essiona( s+a(per +o0p(ained in t*e newspapers, 42e +an5t 0ake not*ing.4 #n ot*er words, t*e new open 0arket prod'+ed re0arkab(e )et predi+tab(e res'(ts. 2it* s'pp() and de0and in one p(a+e, b')ers s*opped and se((ers *'st(ed %% s+',,(e%,ree. #t was re0inis+ent o, t*e *'0b(e 2a(( 6treet beginnings o, t*e sto+k e;+*ange. ?err) 9o(ange(o +a0e o't on t*e arena5s ba(+on) to (ook 'pon t*e se+ondar) 0arket in operation. Appropriate(), *e was Boined b) C's* Di0ba'g*, per*aps t*e 0ost o'tspoken ad/o+ate o, +apita(is0 in A0eri+a toda). &*e) wat+*ed 0arket rea((o+ation. &*e) st'died de0and and s'pp(). &*e) witnessed ,ree enterprise and a 0arket%based so('tion to s+a(ping, so0et*ing t*at *ad e/aded a +ent'r) o, (egis(ation: #, )o' +an5t beat t*e s+a(pers, p't t*e0 a(( in one p(a+e and (et t*e0 +o0pete. &*e two 0en s0i(ed. %%%

@r. !appe( is a pro,essor o, e+ono0i+s and asso+iate dean in t*e 9o((ege o, .'siness at Ari=ona 6tate 8ni/ersit). @s. ?ennings is a pro,essor o, (ega( and et*i+a( st'dies t*ere and a +o('0nist ,or t*e Ari=ona Cep'b(i+.