Is the market for spectator sports allocatively efficient?

Question

Sorry that this question is so open ended but I think that the answer is yes and no. If we look at the prices of tickets to attend major sporting events these are likely to be above marginal cost; the price I pay being way above what I cost in terms of extra security etc On the other hand, if I think in terms of costs as being opportunity costs; the organisers may have been able to sell my seat to someone else at a much higher price (look at the existance of ticket touts). And then, there is the chance that an event might be broadcast for free on TV. If P

Answer 1

Although I see your point using the opportunity cost, but if every ticket was sold on the highest bid, there certainly wouldn't be as many 'sold out' events are there currently are. By this, the organizers of what ever event would actually loss money, which brings us right back to the opportunity cost..