You bought a ticket to see Hans Zimmer for $100 next week. You can sell this ticket last minute on Ticketswap for $40. You would have been willing to pay $140 for seeing Hans Zimmer. Enya will play on the same evening, and you won a free ticket for this show, which you cannot sell. The tickets for this show normally cost $50. You are willing to pay a maximum of $80 for the concert of Enya. To which concert should you go and how high are your "economic rents" in this case? The answer is: Hans Zimmer, $20. Could someone explain why?

You bought a ticket to see Hans Zimmer for $100 next week. You can sell this ticket last minute on Ticketswap for $40. You would have been willing to pay $140 for seeing Hans Zimmer. Enya will play on the same evening, and you won a free ticket for this show, which you cannot sell. The tickets for this show normally cost $50. You are willing to pay a maximum of $80 for the concert of Enya. To which concert should you go and how high are your "economic rents" in this case? The answer is: Hans Zimmer, $20. Could someone explain why?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6MC

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