4 ms·
Pricing is the way in which information about supply and demand is conveyed in a decentralized manner in a free market. When prices of a good or service goes u
by jcbrand 5y ago
Pricing is the way in which information about supply and demand is conveyed in a decentralized manner in a free market.
When prices of a good or service goes up, it incentivises other manufacturers or service providers to produce more of that good or service, which increases supply and puts downward pressure on prices.
So to answer your question, higher priced tickets increases supply, which causes lower priced tickets, which benefits poor people.
Eventually prices reach a level where supply and demand match and (for example) concerts are as cheap as they can be given their cost and the demand in the market for them (including the demand from poor people).
This EconTalk episode on price gouging during a natural disaster was very interesting, and somewhat related to this topic:
https://www.econtalk.org/munger-on-price-gouging/ https://www.econtalk.org/munger-on-price-gouging/
- dmitriid 5y agoThere are literally thousands of concerts, and sporting events, and any other events that people buy tickets to. Guess why people still go to Sziget or Woodstock. Also guess why it's impossible to just click your fingers and pull an unlimited number of Woodstocks out of thin air.
- jcbrand 5y agoI'm not sure what you're trying to say. The fact that there is a limited number of Woodstocks is irrelevant. There are other organizers and bands who can also offer concerts, and at a reduced price compared to the premium that something like Woodstock would demand. That's competition, and it puts downward pressure on concert prices in general, thereby helping people on a tight budget.
- dmitriid 5y agoThere are already thousands of concerts doing that. And yet Woodstock is still there with their prices. Why do you think that is?