THE ECONOMICS OF TICKET SCALPING Introduction: Many states have laws related to ticket resale for sporting events and concerts. These laws are commonly referred to as anti-scalping laws. While their intention is to protect ticket buyers from fraud and high prices, you will recognize these laws as price ceilings. The same supply and demand analysis conducted on other forms of price ceilings can be applied to the world of sports (concert) tickets. Review: A price ceiling is a maximum price that can be charged for a good, set by law. Well know price ceilings are rent controls. When price ceilings are set below equilibrium, it results in increased quantity demanded but decreased quantity supplied and a shortage occurs. Read the following quote: from a past USA Today sports section, "Care to pay $1,000 for a No. 2 lead pencil? How about $550 for a key chain, or $51 for an unused coaster? Did we mention that we'll throw in free tickets to Saturday's Big Ten football showdown between Ohio State and Michigan? 1. Explain why this strange situation (above) sometimes occurs outside major sporting events? 2. Define ticket scalping and list examples of ticket scalping that you may have encountered in your own lives