Our pal Prof. Michael Munger of Duke makes an upsetting case to his peers who are fans of the university’s basketball team:
The face value of a basketball ticket to Cameron Indoor Stadium is $40. But for most games one could get a lot more than that. For some games, in fact, like Duke vs. UNC, the value of a scalped ticket is well over $1,000. In 2006, the value was more like $2,500. So, when faculty ask me (as department chair) for a raise at the end of the year, I will remind them that they don’t need more money, because they are already rich.
“What do you mean?” they ask.
I reply, “Well, you can afford to spend $2,500 to go to a basketball game. You must be wealthy.”
They show me the ticket. “$40! It’s a $40 ticket!”
My response? “Tell you what. I have $50. Will you sell me the ticket for that price? After all, you claim it’s a $40 ticket.”
So far, I haven’t been able to buy any tickets that way, even from people who tell me that opportunity cost is a stupid concept.
It reminds me of my unfortunate encounter with someone willing to walk away from monetary income below the nominal ticket price when he had an extra ticket, I had none, and I was the only one left outside the arena. Please note that Munger’s explanation serves to underscore just how generous a guy our Chad Adams is.
HT: DivisionofLabour.com.
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