Well if you reduce demand.....aren't you creating that? I am thinking you may have fell asleep.
So reducing demand to create a shortage automatically causes panic buying? Probably should tell that to the guy trying to sell horse saddles to the everyday commuter.
He meant reducing supply can create a shortage and that drives up the market price.
The fewer available tickets, the more you can charge. How much more is an answer nobody knows. It would certainly drive up the value of the ticket but I am unsure on how much.
For example, I am not advocating this but I like to use extreme examples to make economic points:
Pitt announces it is reducing capacity to 25K. Its only using the lower bowl and under no circumstances would it open the upper deck, not even if we were 11-0 and playing for a NC. They also state they are raising the ticket price of lower bowl tickets to $500 each.
What this does is shortens the supply below the demand curve. There are now far more prospective ticket buyers than there are seats available. Not only can Pitt charge more because most of us diehards are going to pay the extra few hundred to be there, but it greatly increases the value of the ticket on the secondary market. For several reasons:
1. Only lowers available, dont have to compete with thousands of tickets selling for the stubhub minimum of $6
2. Reduced supply on the secondary market. Diehards go to most games
3. The reduction in available season tickets mean there are an extra 10K-20K prospective Pitt fans that cant buy single game tickets. Their only way in is through the secondary market. Secondary market demand goes way up.
So instead of not bothering to list a Pitt/GT ticket for $10, you quickly learn how to use Stubhub because you can get $75 each for them now. There's way more incentive to ensure somebody is in your seat. This means mostly all 25K seats are filled for every game.
Now, 25K is too small. You go up to 45K and this all applies but there is a greater supply and lower demand. You go to 70K and you have the disaster we currently have.