Sunday, February 21, 2010

Repeat after me: Opportunity Cost

Holy half-wit, Batman! This person has zero concept of opportunity cost.

Hard to tell, exactly, but I think the implied value of this person's time is about $6 per hour. So, if you are making minimum wage, by all means take his advice.

Otherwise, read this,
and stop shopping once you have to make a new reservation for $1 decrements in plane fare.

3 comments:

Unknown said...

You may a good point about opportunity costs. However, you do seem to be ignoring something about the specific example you have chosen. Namely, most people perceive scalping as morally wrong, or at least a little iffy, even if it is legal. In a sense, most people would add a significant 'transaction charge' simply for participating in scalping. And most people would feel far worse about being the scalper than they would about buying scalped tickets.

Your colleagues would probably feel fairly dishonorable selling their $40 ticket for $2500, and avoiding that feeling may very well be worth $2500 to them. You may question their judgement, but it's not your call.

So, in principal, I agree with you, but I actually think you may have picked a bad example.

Unknown said...

@Dustin

The only party feeling bad about scalping is Ticketmaster...and only because it infringes upon their nearly monopoly service fees. They are so concerned about it...Ticketmaster set up their own aftermarket ticket exchange so they can again...collect their pound of flesh.

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