Friday, November 5, 2010


Sens Plan To Jack Up Price
Ottawa's favourite hockey team plans to raise ticket prices on premium games. The closer it is to game day, the higher the cost will be for some of the seats.
...and this predictably drags out the boo-birds who declare this as nothing less than unadulterated greed.

What I don't get is why these "fans" think it is OK for a third party to buy a ticket from the Senators for some price, then sell it at a higher price, pocketing the difference. That ticket still sells for the higher price. Why should that profit not go to the team for providing the entertainment?

The problem for these "fans" isn't that the Senators want to raise prices. The problem for these "fans" is that someone is willing to pay more than they are. And the team just wants an increased cut of that money.

This is basic economics, people. If someone is willing to buy a particular ticket for $300, why on earth should the team sell it for $200?

And if the team raises prices beyond the willingness of their market to pay, then they'll end up with less-than-sold-out games, and at that point they'll have to reconsider.