In 2007, Miley Cyrus went on her first concert tour, performing both as herself and in character as Hannah Montana. Tickets with a retail price of $20 to $60 sold out within minutes, only to be resold on secondary online markets like eBay and StubHub at prices of $500 and up. Many of Cyrus's devoted young fans were outraged, and their anger threatened to undermine Cyrus's popularity and the reputation of the ticketing agency. In this case, students find the optimal pricing scheme for one of Cyrus's concerts that would maximize revenue for the artist, venues, the ticketing agency; decrease the revenue "stolen" by resellers; and satisfy fans with limited budgets.
Maglaras, Costis. Hannah Montana and the Tour of Doom. New York: CaseWorks, August 11, 2010.
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