Bidding for a Taylor Swift ticket or to cut the line at DisneyWorld? Maybe you're in a 'hidden market'

Wharton professor Judd Kessler explains how excess demand and artificially low prices create a system where the real allocation happens off-screen.

Published on Mar. 8, 2026

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Wharton professor Judd Kessler has studied 'hidden markets' where demand overwhelms supply, prices are kept artificially low, and the real allocation happens somewhere offscreen - like getting a Taylor Swift ticket or a reservation at a popular restaurant. These hidden markets are a big part of modern life, with someone profiting from the resulting friction. Kessler argues the reason they exist is because there is excess demand given the price being charged, and people don't like the idea of using price alone to allocate scarce resources. He discusses examples like Disney World's pricing strategies and the concert ticket industry, suggesting consumers should understand the rules of these hidden markets and 'settle for silver' to improve their odds.

Why it matters

Kessler's research on 'hidden markets' sheds light on how modern life is increasingly decided by systems where demand exceeds supply, but prices are kept artificially low. This creates friction and hidden allocation methods that benefit certain players, raising questions about fairness and access. Understanding these dynamics can help consumers navigate these markets more effectively.

The details

Kessler has studied how hidden markets emerge when the price of something scarce, like concert tickets or restaurant reservations, is set far below what the market would naturally bear. This causes the scarcity to move into queues, lotteries, intermediaries, and perks - out of sight. Companies like Ticketmaster, Live Nation, and Disney use strategies like limited inventory at low prices, premium access programs, and line-skipping passes to monetize these hidden markets. Kessler argues this is driven by a collective discomfort with using price alone to allocate scarce resources, as that would distribute access based on wealth and income inequalities.

  • In early March 2026, a government attorney argued at a civil antitrust trial that the concert ticket industry is 'broken' due to Ticketmaster and Live Nation's monopolization of the market.
  • In 2019, American Express acquired Resy.com and began offering Platinum cardholders 'Global Dining Access' reservations that are more exclusive than regular app holders.

The players

Judd Kessler

A Wharton professor and author who has spent his career studying 'hidden markets' where demand exceeds supply but prices are kept artificially low.

Live Nation Entertainment

The parent company of Ticketmaster, which the Department of Justice has accused of monopolizing the concert ticket market and driving up prices.

Taylor Swift

A popular music artist whose concert tickets are in high demand and often resold at much higher prices on the secondary market.

Disney

The entertainment giant that operates Disney World, where visitors can pay extra for perks like skipping lines and accessing exclusive experiences.

American Express

A credit card company that acquired Resy.com in 2019 and offers its Platinum cardholders exclusive dining reservations.

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What they’re saying

“Somehow, we'll give the folks who are willing to pay over here for the Amex, we'll give them the early reservations. And that's how we'll solve this problem … no one seems to complain about that.”

— Judd Kessler, Howard Marks Professor, Department of Business Economics and Public Policy, Wharton School (Fortune)

“My more recent research in that vein is looking at the potential for firms to hide how they do it, to basically personalize prices without having any consumers be aware. And so that's something that's hard to prove.”

— Benjamin Shiller, Professor, Brandeis University (Fortune)

What’s next

The judge in the Ticketmaster antitrust case will decide on Tuesday whether to allow the company to continue its current practices or impose stricter regulations.

The takeaway

Kessler's research highlights how 'hidden markets' where demand exceeds supply and prices are kept artificially low have become pervasive in modern life, from concert tickets to restaurant reservations. Understanding the dynamics of these systems can help consumers navigate them more effectively, rather than just raging against the unfairness of the system or resigning themselves to impossible conditions.