Wednesday, June 15, 2005

eBay pulls Live 8 concert tickets

It is a scalper thing in the real world.
Free ticket doesn't have any value. But they can be sold on Ebay means it still has the profit for people who is selling it.

I think it is more complicated in the real world than in microeconomics. people have stuff to sell and people who want them want to lay out money. It is not wrong if we simplify it. But in a bigger context, it is wrong. So shall we simplify the situation or to explain it in the real world?

1 comment:

Greg Delemeester said...

I'm not sure I understand your argument. Are your for or against reselling ("scalping") the Live 8 tickets? The pricing of concert tickets is an interesting case study. Generally promoters do not price their tickets so as to "clear the market" (that is, the equilibrium price). Rather, prices are usually set below the market equilibrium price so as to create an artificial shortage for the product. Why do you think promoters do this? Whenever there's a shortage of a product, you can bet an active black market will soon arise.