A. Markets and WelfareIN THENEWSHow Ticket Resellers Help AllocateScarce Resourcesmodern twist on a practice that has long been registered as a broker from buying and sellingdemonized by the public and legislators.Scalping certainly results in some con-sumers paying higher prices than they other-wise wuuld. Bul inu exchange for high prices, them most highly. If someone decides at theconsumers can get the tickets they want, when last minute to attend a play, a concert or athey want them, without waiting in line or com- game, they can find tickets at some price.peting to be among the first to buy them online Without scalpers, some people who value theat a given time. Opponents mistakenly con- event highly would be unable to buy tickets forclude that high prices are the fault of scalpers, seats of the quality they desire.when in fact prices are high because of a largeIs ticket reselling a scourge ora wayto make markets more efficient?tickets for a profit.Scalping benefits the scalper and thebuyer, by getting tickets to whomever valuesScalping Isn't ScammingBy Tracy C. MillerThe cost of tickets to the Broadway musi-I cal "Hamilton" skyrocketed at one pointover the summer as scalpers charged $1,000or more for tickets to the show, when the demand and a limited supplyaverage ticket's face value was $189. Inresponse, Sen. Chuck Schumer (D-NY) is pro- but 15 states have laws that prohibit scaiping them to eam ticket revenue through face-valueposing federal legislation that would prohibit in at least some circumstances. Another seven prices long before an event, while scaipersthe use of software to facilitate ticket scalp- states require a seller to have a license to bro-Scalping can also benefit ticket producersthe sports teams or performing artists whoAt present, no federal laws limit scalping. supply tickets-in two ways. First, it enablesbear the risk that demand and prices mightfall below the price they paid. Second, becauseing. Do we really need legislation to curb this ker a ticket, and some limit how much ticketpractice?Scalpers are using bots to buy up a large states don't allow scalping within a specified be higher than it would otherwise be, enablingshare of tickets online before the public gets distance of the venue where an event is held. ticket producers to charge more.a chance to purchase them. Then they resell Others allow reselling tickets purchased forthose tickets for much higher prices. This is a personal use, while prohibiting anyone not before an event, such as the cost of renting anbrokers can mark up the price af tickets. Someof scalpers, the initial demand for tickets mayTicket producers incur expenses longarena. They can keep their selling costs down loyal customers, they can choose their method though, ticket producers may prefer to lock-inby selling all or most tickets quickly rather of distributing tickets to accomplish that ahigh price and sell all their tickets quickly.than over an extended period of time. By buy- goal, such as by setting aside a percentage of which may mean selling a large percentage ofing tickets when they first become available tickets to sell at what they consider a reason- their tickets to scalpers.and holding an inventory to sell at times that able price to those customers. In many cases,are most convenient to consumers, scalp-ers connect buyers with sellers and benefitboth. They act as brokers, and the differencebetween the price they pay and the price theyreceive is their reward for doing this. The morescalpers compete to buy and resell tickets, thelower the markup that each will earn.If scalpers are fen in number and skilledat assessing each consumer's demand fortickets, they can charge each consumer aLaws to prevent scalping are unnecessaryand prevent mutually beneficial transactions.Scalping only occurs when original ticket sell-ers charge a price that's lower than someconsumers are willing to pay. If scalpers usesoftware that's efficient at buying and sellingtickets, it will save time and effort and eachparty involved in the process benefits. In oneway or another, the ticket producer, the scalperand the people who attend the event will eachbe better off.price close to the maximum he or she is will-ing to pay The higher the average price theycan charge per ticket, the more they can payto the team or performing artists who producethe tickets.Scalping does alienate some consumerswho pay higher prices to buy from scalperswho got to the ticket site before they did. Asa result, these consumers may be less willingto attend future events. If performing artistsor sports teams want to avoid alienating their Lin-Manuel Miranda as HamiltonSource. US News and World Report Octuber 4, 2016.Discussion Question 4.1:1. Why do you think the producers of Hamilton charge much less for tickets than the ticketresellers charge?2. Do you think there should be laws against reselling tickets above their face value? Why orwhy not?

Question

A. Markets and WelfareIN THENEWSHow Ticket Resellers Help AllocateScarce Resourcesmodern twist on a practice that has long been registered as a broker from buying and sellingdemonized by the public and legislators.Scalping certainly results in some con-sumers paying higher prices than they other-wise wuuld. Bul inu exchange for high prices, them most highly. If someone decides at theconsumers can get the tickets they want, when last minute to attend a play, a concert or athey want them, without waiting in line or com- game, they can find tickets at some price.peting to be among the first to buy them online Without scalpers, some people who value theat a given time. Opponents mistakenly con- event highly would be unable to buy tickets forclude that high prices are the fault of scalpers, seats of the quality they desire.when in fact prices are high because of a largeIs ticket reselling a scourge ora wayto make markets more efficient?tickets for a profit.Scalping benefits the scalper and thebuyer, by getting tickets to whomever valuesScalping Isn't ScammingBy Tracy C. MillerThe cost of tickets to the Broadway musi-I cal &#34;Hamilton&#34; skyrocketed at one pointover the summer as scalpers charged $1,000or more for tickets to the show, when the demand and a limited supplyaverage ticket's face value was $189. Inresponse, Sen. Chuck Schumer (D-NY) is pro- but 15 states have laws that prohibit scaiping them to eam ticket revenue through face-valueposing federal legislation that would prohibit in at least some circumstances. Another seven prices long before an event, while scaipersthe use of software to facilitate ticket scalp- states require a seller to have a license to bro-Scalping can also benefit ticket producersthe sports teams or performing artists whoAt present, no federal laws limit scalping. supply tickets-in two ways. First, it enablesbear the risk that demand and prices mightfall below the price they paid. Second, becauseing. Do we really need legislation to curb this ker a ticket, and some limit how much ticketpractice?Scalpers are using bots to buy up a large states don't allow scalping within a specified be higher than it would otherwise be, enablingshare of tickets online before the public gets distance of the venue where an event is held. ticket producers to charge more.a chance to purchase them. Then they resell Others allow reselling tickets purchased forthose tickets for much higher prices. This is a personal use, while prohibiting anyone not before an event, such as the cost of renting anbrokers can mark up the price af tickets. Someof scalpers, the initial demand for tickets mayTicket producers incur expenses longarena. They can keep their selling costs down loyal customers, they can choose their method though, ticket producers may prefer to lock-inby selling all or most tickets quickly rather of distributing tickets to accomplish that ahigh price and sell all their tickets quickly.than over an extended period of time. By buy- goal, such as by setting aside a percentage of which may mean selling a large percentage ofing tickets when they first become available tickets to sell at what they consider a reason- their tickets to scalpers.and holding an inventory to sell at times that able price to those customers. In many cases,are most convenient to consumers, scalp-ers connect buyers with sellers and benefitboth. They act as brokers, and the differencebetween the price they pay and the price theyreceive is their reward for doing this. The morescalpers compete to buy and resell tickets, thelower the markup that each will earn.If scalpers are fen in number and skilledat assessing each consumer's demand fortickets, they can charge each consumer aLaws to prevent scalping are unnecessaryand prevent mutually beneficial transactions.Scalping only occurs when original ticket sell-ers charge a price that's lower than someconsumers are willing to pay. If scalpers usesoftware that's efficient at buying and sellingtickets, it will save time and effort and eachparty involved in the process benefits. In oneway or another, the ticket producer, the scalperand the people who attend the event will eachbe better off.price close to the maximum he or she is will-ing to pay The higher the average price theycan charge per ticket, the more they can payto the team or performing artists who producethe tickets.Scalping does alienate some consumerswho pay higher prices to buy from scalperswho got to the ticket site before they did. Asa result, these consumers may be less willingto attend future events. If performing artistsor sports teams want to avoid alienating their Lin-Manuel Miranda as HamiltonSource. US News and World Report Octuber 4, 2016.Discussion Question 4.1:1. Why do you think the producers of Hamilton charge much less for tickets than the ticketresellers charge?2. Do you think there should be laws against reselling tickets above their face value? Why orwhy not?

Accepted Answer

Price is the most critical aspect of marketing. To set right price is critical and tough part. If a…

Discussion Question 4.1: 1. Why do you think the producers of Hamilton charge much less for tickets than the ticket resellers charge?