Scalping tickets is a great way to see how markets work. Formany, going to the game has value, and that value will vary widely.When teams price tickets and don't sell out it lets us know thatthey priced tickets too highly. The opposite is true for games thatdo sell out and more people want to go to the game than ticketsavailable. However, the scalper and ticket buyer truly show how amarket (free from price controls) can lead better outcomes. Yet, inmany states ticket scalping is either illegal or strictlyenforced.
Consider the state of Georgia. Under Georgia state law, it isunlawful to sell a ticket in excess of face value (there are someadded caveats as well). Whereas, Alabama allows resell of ticketswith the condition that the scalper has paid $100 for alicense.
A) Consider that the ticket price set by the team, is not themarket clearing price. If the stadium isn't filled, then the priceof the ticket was too _____ and created a _____ in themarket.
B) Consider that the ticket price set by the team, is not themarket clearing price. If the stadium is full, and more people wantto go to the game, then the price of the ticket was too _____ andcreated a _____ in the market.
C) Explain why, in states where scalping is illegal, ticketscalping is essentially a price floor of infinity.
D) In a state where scalping is illegal, what creative waycould a scalper sell you a ticket for more than the face value ofthe ticket?
