You are overlooking the secondary effect — what happens if you, a musician, a person who lives off having a positive public image, becomes known as the kind of musician who uses free market forces to effectively price fans out? Fans will not like it. It is not rational but nothing in music is. You win the pricing battle but lose the PR war. It's bad for your business and the entire business of concerts in the long run.

And with your particular pricing scheme, there is arguably still nothing stopping scalpers from scooping up the tickets after the price drops to a level likely to be profitable for them but before fans had the time to react. In fact it would probably benefit the scalpers even more because they will have more time to track price drops than your average fan!