--%>

Elucidate Ticket Scalping - A Bum Rap

Elucidate “Ticket Scalping:  A Bum Rap”?

E

Expert

Verified

1. “Scalping” refers to the practice of reselling tickets in higher rates as compared to the original rates, which happens often with athletic and artistic events.  Is this “ripping off” justified?

2. Ticket re-sales are voluntary—both buyer and seller must feel that they gain or they would not agree to the transaction.

3. “Scalping” market simply redistributes assets (tickets) from those who value them less than money to those who value them more than the money they’re willing to pay.

4. Sponsors may be injured, but in that case they ought to have raised the prices of tickets higher.

5. Spectators are not damaged, according to economic theory, because those who want to go the most are getting the tickets.

6. Both seller and buyer benefit and event sponsors are the only ones due to which their own error in pricing may lose and they would have lost from this error whether or not the scalping took place.

 

 

   Related Questions in Business Economics

  • Q : Resource markets in simple circular

    Can someone help me in finding out the right answer from the given options. In resource markets in a simple circular flow model, house-holds exchange their _________ for _________. (1) Resources | income. (2) Goods | profits. (3) Labor | goods. (4) Devotion | enlighte

  • Q : Describe financial leverage and low

    Describe briefly high financial leverage, low operating leverage?

  • Q : Unpredictable and frequent fluctuations

    Adam Smith attributed unpredictable and frequent fluctuations within profits to: (i) variations in the prices of the goods a firm or person produces and sells. (ii) the bad or good fortune of rivals. (iii) the good or bad fortune of customers. (iv) tr

  • Q : Economic sense production methods

    Evaluate and explain the statements: “In the economic sense production methods are the most efficient methods, once resource prices are considered and are lesser in sense of engineering”.

  • Q : How can we evaluate cost of capital How

    How can we evaluate cost of capital?

  • Q : Illustrate how Microeconomics looks at

    Illustrate how Microeconomics looks at specific economic units?

  • Q : Why is speculation unlike arbitrage

    Speculation is unlike arbitrage since: (1) speculative buyers always break even. (2) speculation causes increased costs. (3) speculators bear no risk. (4) positive returns for speculators are not sure. (5) competitive speculation equa

  • Q : Restriction of laissez-faire government

    A laissez-faire government is restricted to finding: (1) property rights within a simple fashion and to enforcing private contracts. (2) market prices which guarantee equitable resource allocations. (c) how resources will be allocated efficiently. (4)

  • Q : Barter - Efficiency and the Gains from

    Relative to other systems, economies in that people exchange goods or resources directly along with other people for other goods or resources without using money like a usual denominator rely relatively heavily upon: (i) barter. (ii) specialization. (

  • Q : Production possibilities curve is a

    How a production possibilities curve is a graphical representation of choices?