Re: Ticket scalping: is this illogical?
Not enough inforamtion.
You currently have some certain budget constraint under which you live. Given this budget constraint, you will spend $50 to go to this concert but not $250.
When you buy the ticket, your budget contraint increases by $200. It is possible that under your new budget constraint you are willing to spend $250 to go to the concert.
As a starker example, let's say someone gives you $100,000 cash when you are considering going to the concert. This makes the $200 opportunity cost much less important, and greatly increases your tendency to go.
Thus buying the ticket increases your income, which makes all purchases less costly, which might just make the $250 concert ticket a rational buy.
This ignores the potential illegality and transaction cost associated with selling your ticket. This plays into your hands here.
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