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For the extra credit assignment, please listen to two podcasts titled: a) “Scalping World Cup Tickets, Not an Easy Task”, which can be found here: http://www.npr.org/templates/story/story.php?storyId=...

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For the extra credit assignment, please listen to two podcasts titled:
a) “Scalping World Cup Tickets, Not an Easy Task”, which can be found here:
http://www.npr.org/templates/story/story.php?storyId= XXXXXXXXXX
and b) “The Economics of Scalping Super Bowl Tickets” which can be found here:
http://www.npr.org/templates/story/story.php?storyId= XXXXXXXXXX
(links are also posted in the Webliography tab in eCollege). When listening, please pay careful attention to concepts like supply, demand, price, trade, willingness to pay, scalping, markets etc. as narrated in the podcasts and explained in your textbook (please refer to “…...inthe news” on page 148 of the text as well). Please write a report based on the podcasts & the news article in the text and a critique as well (do you agree with Mankiw’s view that “Consenting adults should be able to make economic trades when they think it is to their mutual advantage” or do you think that scalping is a consumer rip-off and hence scalpers should be charged and prosecuted).
Please restrict your report to facts in the podcast and the news item in the text (and the concepts outlined above) to ensure everyone is on even footing. For reasons of fairness, I want to make sure everyone has the same access to information for this discussion. Also, please make sure you don’t go off on tangents. The report should adhere to the following guidelines:
1. Original typed (double-spaced) using Word for Windows 6.0 and above. Should be two pages of text (excluding title page, bibliography, questions etc.) and should follow the APA style. Further, please ensure that:
Pages are numbered beginning on the first page of text.
Identifiable by name on title page.
Proofread and edited for typographical and grammatical errors.
2. Authorship:
Original work (reflecting your individual effort, not that of others); plagiarism will result in a failing grade for the course.
3. This assignment is worth 20 points anda hard copy is due inclass on Thursday, April 4, 2013.
Answered Same Day Dec 31, 2021

Solution

David answered on Dec 31 2021
105 Votes
Ticket “scalping” is the practice of reselling tickets to athletic and artistic events at prices, different from the official prices. In many nations like South Africa the law is stringent, whereas it is lax in US.
Price is determined by demand and supply forces. typically, those who procure the tickets officially attempt to sell them at higher prices-a practice called scalping/ reselling. It was valued at $2.5 billion in US alone. The success of scalping lies in discovering that, the official price is less than what people are willing to pay for it. If the reseller can discover this willingness level, he/she can make a profit that equals the difference between official price and the resale price. The reason this demand exists is that organisers have no clear means to estimate the co
ect level of demand, while the supply is known and often fixed by stadium capacity. At other times, the game is so highly valued by the spectators that supply falls short of demand, i
espective of demand. In both cases we have a section of consumers who are willing to pay a higher price for a ticket. This price is not a rip off or a scam- it only represents the true ‘willingness’ to see a game. A resale will ocur when the person who is selling has a lower utility associated with watching game than the utility of the buyer. Since the utility is higher the buyer is willing to pay a ‘high’ price in line with his willingness and utility derived. This utility is a subjective assessment. The buyer enjoys more satisfaction from the money/profits he earns compared to the satisfaction from watching the game. The buyer enjoys greater...
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