EconTalk Michael Munger on Ticket Scalping and Opportunity Cost
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Apr 10, 2006 
Michael Munger, economist and Duke professor known for public choice and applied microeconomics, explores ticket scalping and opportunity cost. He uses classroom thought experiments and real-world examples like eBay, gifts versus cash, and reselling season tickets. Short, lively discussions probe why people treat found tickets differently and how markets and emotions shape resale behavior.
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Lost-And-Found Concert Tickets
- Michael Munger describes camping overnight and missing sold-out Greenway concert tickets, then finding two tickets in a scuffed envelope.
- He uses this story to pose the question of whether to go to the concert or sell the tickets given the $300 market price each.
Found Items Carry Opportunity Cost
- Munger explains the economist's answer: the found tickets are equivalent to finding $600, so opportunity cost remains.
- He notes many people instead act as if 'free' tickets change their decision, revealing a divergence between theory and common behavior.
Accounting Versus Economic Costs
- People often think like accountants rather than economists, ignoring opportunity costs when no cash changes hands.
- Munger illustrates this with a friend who treated an owned beach house as costless despite its foregone investment income.