Examine the market for tickets for popular sporting events through the supply an

Question

Examine the market for tickets for popular sporting events through the supply and demand model. Consider the following questions: How often are you able to buy a popular event ticket (for example, the Super Bowl) at face value? How are the tickets originally rationed by the owners? Who gets the tickets at face value? Note that many more people want the tickets than there are tickets available at the face value. Consider the prices you would pay online or through ticket scalpers. How can the laws of supply and demand be used to explain this situation?

Explanation / Answer

How often are you able to buy a popular event ticket at face value?

Very rarely. Typically event tickets are first come first serve. When the supply is high, the price is at its face value.

How are tickets orginally rationed by the owners?

I'm not really too sure what this question means. Normally the ticket people will allow consumers to purchase as many as they want.

Who gets the tickets at face value?

Those who buy them right when they're on sale or before the event sells out from the retailer.

Laws of supply and demand explains tickets well. There is a limited number of tickets for sale for any event. When the amount of tickets avaliable is the full seating amount, prices from the retail is average price. Then all of your tickets get bought up. When the supply is low and demand is high, prices increase. The tickets then normally changes markets from the retailer (ticketmaster) to a second party (stubhub, etc). The second party you're buying off of looks to profit. You have scalpers that buy to profit off the market for popular events because they know that the demand for it is high. When the amount of tickets avaliable is higher than the demand of that event,you normally can get tickets cheaper than face value.

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