Decisions Under Scarcity: How Loss and Regret Aversion Shape Concert Ticket Purchases in High-Demand Markets

Abstract

The thesis investigates how scarcity, loss aversion and regret aversion, shape consumer decision-making in high-demand digital ticket sales, using Taylor Swift’s The Eras Tour as a case study. The tour’s extraordinary popularity created a competitive ticket environment, intensified by limited availability and social media hype. This study explores how consumers respond to scarcity and emotional trade-offs when making ticket purchase decisions under pressure. A mixed-method survey design combining quantitative regression analyses with qualitative responses was used to gather data from 1,174 participants who participated in Ticketmaster’s European Eras Tour presale. Queue position in the ticket sale served as a proxy for scarcity. Three hypotheses were tested: (1) participants further back in the queue were more likely to spend more than intended (loss aversion); (2) they were more likely to purchase VIP tickets (regret aversion); and (3) participants at the front of the queue were less likely to compromise on ticket type due to greater choice and reduced pressure. All three hypotheses were supported by statistically significant results, complemented by qualitative survey responses.The findings reveal that consumer decisions were shaped by emotional urgency and anticipation of loss or regret, rather than specific preferences. Scarcity activated both loss and regret aversion, leading participants to exceed intended budgets or accept less-preferred options. The study contributes to the behavioral economics of high-pressure consumer behavior in digital markets and offers practical implications for ticketing platforms and artist brands seeking to leverage profitability and extreme demand.