Brand Equity vs. Economics 101

The law of supply and demand: the only thing many people remember from Economics 101.

When demand goes up, prices increase. When demand goes down, prices decrease.

But according to the recent New York Times article, “Why Surge Prices Make Us So Mad: What Springsteen, Home Depot and a Nobel Winner Know,” strict adherence to this economic principle can be detrimental to a brand. Playing the long-game of building and maintaining brand equity is often more important than maximizing short-term gain.

Bruce Springsteen priced tickets for his one-man show on Broadway at $75 to $850 and implemented a system to thwart scalpers from buying up and reselling tickets at a profit.