Question
Alabama head coach Nick Saban, left, huddling with players at Camping World Stadium in Orlando, Fla., in January. PHOTO: REINHOLD MATAY/REUTERS By Spencer Jakab Sept.
Alabama head coach Nick Saban, left, huddling with players at Camping World Stadium in Orlando, Fla., in January. PHOTO: REINHOLD MATAY/REUTERS By Spencer Jakab Sept. 25, 2020 10:34 am ET Students at the University of Alabama are getting to learn a couple of extra subjects this semester free of charge. The first is epidemiology: Halfhearted efforts to contain the spread of Covid19 have resulted in 2,461 students and 227 employees contracting the illness so far at the Tuscaloosa campus. Now comes economics. The Southeastern Conference kicks off football on Saturday. The biggest day of the season not only for students and alumni but nearly all Alabamians is the Iron Bowl against in-state competitor Auburn University. The rivalry is so intense that a couple consisting of one fan of each team is considered a "mixed marriage." Life grinds to a halt and 101,821 fans pack Bryant-Denny Stadium in Tuscaloosa when the game is held there every other year, as it will be this Nov. 28. Tuscaloosa's population triples that Saturday. But not this time: Tailgating is banned and the stadium's capacity will be capped at 20% due to the pandemic. Fans who want to yell "Roll Tide" or "War Eagle" through their masks are getting a real-life lesson in supply and demand. A normally lousy seat in the 30th row of the end zone's upper deck costs $576 on StubHub. Row 24 of the home side upper deck will set you back $955. Better views all exceed $1,000. At least they will avoid the after-game traffic jam
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(c) If the Athletic department at Alabama is not interested in profit-maximization, prices in secondary markets in which tickets can be resold might have prices that more accurately reflect how much consumers value football tickets. Why might the Athletic department at Alabama deviate from profit-maximization? Can you provide an explanation?
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