A reponse to this comment ..... Just need a reposnse On a non-economic stand poi

Question

A reponse to this comment ..... Just need a reposnse

On a non-economic stand point, I think ticket scalping is completely fine. Everyone has the same opportunity to purchase the tickets when they first go on the market and if you happen to not get one, then why should someone else be forced to sell you the ticket at the same price? If you are mutually able to settle on a price, then everyone should be satisfied. However, I do think that prices get out of hand from re-sellers but as soon as the event comes up and their ticket hasn't sold they tend to drop the price. Now from an economic stand point, events like the title "sold out" therefore giving them then incentive to price their tickets lower. They are willing to take a cut in the profit in order to add the prestige of a full house. For sports team specifically, the demand can drastically change per game. A way for the team to secure money is to sell at a moderate price in the beginning in order to ensure they have a profit. If the team begins to play poorly, at least they sold a majority of tickets already.

Explanation / Answer

Scalping is reselling at a large profit.

From a non economic view point scalping disturns demand- supply equilibrium. Because, when a person goes for a ticket booking, it can be told that tickets are ended when there are people who can make tickets available. This has a possibility to black marketing as demand-supply mismatches. Information asymmetry increases. It is true that if re-sellers do not get good demand they lower the price but again it creates more information asymmetry and customers may not be interested as demand preference may shift.

For a sports time supply is inelastic and revenue calculation is very easy. Price per ticket * quantity sold. Hence Selling at less cost intially may ensure that they recover costs. However, an opportunity to attract higher prices may be lost. A strategy can be implemented depending on game importance ( Higher price for Quarter, semi or final matches). Also, a prime membership can be sold to attract more viewers.

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