According to the Washington Post, the new system may be tested on some concerts this summer (ticketmaster.com).

Live Nation Entertainment’s Ticketmaster announced it will launch a new ticket pricing system this year based on consumer demand.

Ticketmaster, the largest live-event ticket provider, will begin the “dynamic pricing” sometime this year, starting with sporting events and concerts, and later incorporating arts and theater.

In the new system, the higher the demand, the more a ticket price will go up.  The lower the demand, the more the price will get cut.

This will keep scalpers from taking advantage in situations when demand for tickets exceeds the supply.  The system would also limit the power of discounters like Goldstar when there are extra unsold tickets.

The new system hopes to counteract the negative results of last year’s concert season, when ticket income plummeted after promoters were left with many unsold seats.

In 2009, Live Nation Entertainment ticket revenue was $1.19 billion.  It fell 12.5% to $1.04 billion in 2010 (latimes.com).