These prices are primary driven by three factors:
1) as previously stated, supply and demand. Very often those affluent enough to afford these tickets do not plan ahead. They take a spontaneous trip to NYC and decide they want to see the "hit" show right now and pay these outrageous prices. The money they pay is not for the value of the seat, but the value of the access.
2) These people can't have these seats if they're gone! So, the producers know you (the average broadway goer) aren't going to spend that much, so rather than hold them off sell, they raise the prices to essentially put these into a "hold status." Is it fair? of course not. But the demand for those seats will exist, if it doesn't already.
3) With a show that does as well as Hamilton did in its off-broadway run, the actors and creative team are going to be making demands on the production that these prices must cover. Signing bonuses (often with six figures!), renegotiated royalties, weekly salary increases, added-value contract items (car service, massages, etc.) are all going to need to be covered. And, because of the previous success, they will likely get many these things. The production will write sorts of things into their production costs, but they still need to cover them.
Here is why these prices are actually a good thing: They are essentially subsidizing the "cheap" seats. There are plenty of reasons why Broadway is so expensive, and they can be argued separately. For this argument, those "first class" buyers are allowing the production to offer seats at a lower price in the theatre - especially for those that buy early. Now, this isn't totally the case for Hamilton because they'll be able to capitalize on the hype and sell everything for a higher price (just as Mormon did early on, and to some extent still do), but they like all shows will eventually trail off and offer really affordable tickets because those people are paying $400 to sit in the 4th row.
This is commercial theatre. They're trying to generate returns to their investors, not make sure you get a seat for under $100. If that's what you're looking for, Broadway has many shows that offer that.
Updated On: 6/12/15 at 01:54 PM