Case Study_Secondary Ticket Market Study Example | Topics and Well Written Essays - 750 words

Study_Secondary Ticket Market - Case Study Example Whilst the teams earn extra revenue from this practice, the main problem is that tickets that are acquired through bad ways are set to tarnish their image. The success in sport is about creating good reputation so as to be in a position to create mutual understanding with the fans. The other problem is that the tickets sold at secondary markets are overpriced and this is detrimental to the teams involved. This is just as good as parallel market where in some instances the tickets are sold for a premium price while their actual value is far below that. This negatively impacts on the fans though the team owners benefit from this practice because they would be working hand in glove with the â€Å"scalpers.† In other words, some people end up reaping from where they did not sow and this is not good practice in as far as sport and gaming are concerned. The image of the team will be tarnished at the end of day and this is the reason why a team should make sure that opportunists do n ot short change the supporters. In the long run, it can be seen that the team will end up losing credibility as a result of the activities of the secondary ticket sellers who may be bent on fulfilling their selfish interests. When people lose trust in the team, it may not be able to generate more revenue since people may end up shunning it. It is problematic for a team to lose the supporters through unethical conduct by the secondary sellers of the tickets. This task should be performed by the agents employed by the team. Analysis and evaluation of the alternatives In the first place, the problem exists because there are some holders of seasonal tickets who feel that they cannot attend all games. As such they decide to sell these tickets to the secondary markets which will later resell them to the people who may be interested in buying them. Whilst this is not a very bad idea since it entails that the team will generate more revenue from this practice, it can be noted that there are certain problems associated with the whole arrangement. In order to address the loopholes identified above, it is imperative for the respective teams to put control measures that are meant to ensure that all unwanted tickets are sold through their offices. Instead of engaging secondary sellers to perform this particular function, the respective teams should create channels that are meant to ensure that unwanted tickets are sold through their office. However, the only disadvantage of this alternative is that the team may not be able to manage all centers that will be responsible for this exercise across the whole country. The other alternative is that the team involved should harness new information and communication technology such that the fans who want to resell their tickets can do it through its official website. If the team harnesses new information and technology, there are likely chances that the loopholes in the secondary ticketing system are eliminated. It also becomes eas y to communicate with the fans intending to sell their tickets such that there is transparency in all the transactions that may ensue. The major advantage of this method is that the internet is secure and transparency is likely to be enhanced since all transactions can be accounted for. All the ticket holders who feel that they no longer need to go to a particular game should approach the registered agents instead of going to secondary ticket holders

Market realities and the maximalization of consumer good Essay

Market realities and the maximalization of consumer good - Essay Example For purposes of definition,a monopolistic competition will be defined as a type of competition that is defined by the fact that only one business or individual can provide the needs of the larger economyConversely, oligopolistic competition will be one in which only a few very large companies offer the given good or service to the market. Likewise, due to the fact that so few players exist within the oligarchic model of competition, it is easy and often common for them to cooperate in order to stifle any entrants to the market. As a function of seeking o understand each of these models to a greater degree, the forthcoming analysis will seek to provide the levels of differences that exist between the two as well as showing some figures that illustrate the ways in which the market behaves under these different models of competition. Lastly, a value judgment will be made with respect to which of these is the best model of competition to maximize consumer good within the economy. Althoug h it is useful to seek to provide a contrast between the two so that the reader and/or researcher can best judge how these two forms of competition act within the given economic system, there are a level of similarities between the two that cannot be ignored. In both of these models, the consumer is at a price disadvantage due to the fact that the price maker(s) is holding almost all of the power and has the ability to set the price according to non-market regulated means. (Lu, 2011). Likewise, also from the consumer’s perspective, the level of selection of goods or services between both models is similarly constrained. Due to the fact that one or a handful of firms are holding the means of production and/or distribution firmly within their grasp, the availability of substitutes is greatly diminished (Marini & Zevi, 2011). Conversely, the differences that exist between the two market realities also help to differentiate the two models. The first of these revolves around the f act that a monopoly allows for much lower level of consumer choice than does the oligarchic system. Although both systems necessarily constrain the choice to the consumer, it is impossible to consider a situation in a monopolistic model in which a price war would take place (ZHELOBODKO et al, 2012). Conversely, although rare, price wars can and do take place within the oligarchic model due to the fact that a particular firm or group of firms may seek to leverage an advantage and further reduce the competition by driving one of the participants out. Figure 1 and 2 below seek to point out the key means by which monopolistic and oligarchic competition affects the supply and demand curves of the traditional representation of the economy. Due to the ways in which these are warped from the standard representations, the reader can gain a degree of inference with respect to how these effects will be passed along to the end consumer within the markets. Figure 1.0 Oligarchic Competition Figur e 2.0 Monopolistic Competition Consequently, the reader and/or researcher can understand that with regards to the maximizing the good of the consumer, the oligarchic model is most appropriate due to the fact that although it provides the consumer with only a few options between firms or between products, it necessarily exhibits a greater level of offerings than does that of monopolistic competition. Moreover, due to the fact that the firms within an oligarchic system compete, at least to a small degree, some utility is able to maximized on behalf of the consumer (Essen & Hankins, 2013). This is a function of the fact that the monopolistic system is the price maker and the consumer is the price taker. Although one can argue that in the oligarchic system the same is true, the fact of the matter is that it is reduced due to the reality of the small level of continuing and ongoing competition that is present. Though few realistic examples exist within the world with regards