Black Markets

Tickets to athletic events, concerts and other venues are often resold at higher than original prices. In some states, scalping is outright illegal, while in other states, scalping is legal under certain circumstances.

You may have your own opinion about scalping, and it may be related to moral issues. I would like you to use some of the concepts you have learned in this course to analyze the issue and answer the following questions:

1. Isthe original ticket price necessarily an accurate measure of theequilibrium price?

2. Who are the winners and losers in scalping?