Sporting Event – Black Market / Adam Smith

 

The black market or secondary ticket market for Premier League tickets is worth millions of pounds with thousands of tickets being sold on a weekly basis to the biggest games. The only way to get tickets normally to these games is to either purchase them online via the many websites that are selling them or outside the stadium.

As with all Premier League games you have the option of either purchasing them officially from the football club directly or purchasing them unofficially from the secondary market with the latter often being more expensive.

As a direct result of the price of tickets to go and attend premier league games, sometimes the black market could be the only option, however this is extremely dangerous for the consumer, and is some places deemed to be illegal and unprofessional. This would immediately raise concern on behalf of the consumer as it would be a dangerous procedure to carry out, also it would generally be more expensive to buy tickets from the black market.

The impact of the black market for the consumer of the football clubs, most notably the sporting director of each club respectively, the club would lose substantial profit per ticket sold every week. This would culminate until millions lost per year. On the other hand, the people who are running the black market sale of these tickets would gain large amounts of profit, as they can sell their tickets at a higher price due to the fact that they can enable a customer to obtain a good viewing and position within the stadium.

Courtesy of: https://www.safefootballtickets.com/premier-league/

The theory of Market Equilibrium is: The equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets.

Smith laid the foundations of classical free market economic theory. The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, he developed the concept of division of labour, and expounded upon how rational self-interest and competition can lead to economic prosperity.

Courtesy of: https://en.wikipedia.org/wiki/Adam_Smith

2 Types of Auction:

  1. They may be used to sell any item and so are universal.
  2. The outcome of the auction does not depend on the identity of the bidders.
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