Let’s explore the concept of willingness to pay with a thought experiment. Imagine a specific...

Question

Let’s explore the concept of willingness to pay with a thought experiment. Imagine a specific sporting, entertainment, or cultural event that you would very much like to attend— perhaps a World Cup match, the seventh game of the World Series, a Rolling Stones concert, or a Kathleen Battle performance.

a. What is the most you would be willing to pay for a ticket to the event?

b. Imagine that you won a ticket to the event in a lottery. What is the minimum amount of money that you would be willing to accept to give up the ticket?

c. Imagine that you had an income 50 percent higher than it is now, but that you didn’t win a ticket to the event. What is the most you would be willing to pay for a ticket?

d. Do you know anyone who would sufficiently dislike the event that they would not use a free ticket unless they were paid to do so?

e. Do your answers suggest any possible generalizations about willingness to pay?

Q

Robert · Accepted Answer

1 
 
Let’s explore the concept of willingness to pay with a thought experiment. Imagine a specific 
sporting, entertainment, or cultural event that you would very much like to attend— perhaps a 
World Cup match, the seventh game of the World Series, a Rolling Stones concert, or a Kathleen 
Battle performance. 
a. What is the most you would be willing to pay for a ticket to the event? 
Answer – The willingness to pay for a ticket to the World Cup match will depend on the team 
which are playing the match. I shall be willing to pay $100 for a single match when one of the 
team is from U.S. The amount will fall when the match is between two foreign countries only. 
b. Imagine that you won a ticket to the event in a lottery. What is the minimum amount of money 
that you would be willing to accept to give up the ticket?

Let’s explore the concept of willingness to pay with a thought experiment. Imagine a specific sporting, entertainment, or cultural event that you would very much like to attend— perhaps a World Cup...

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