Chapter 4 Discussion Topic

In the following podcast from NPR’s Planet Money, Kid Rock discusses how his pricing strategy is an attempt to remove scalpers from the ticket equation. Please listen to the podcast and answer the following questions:

https://www.npr.org/sections/money/2013/06/27/196277836/kid-rock-takes-on-the-scalpers

1. What do think about Kid Rock’s strategy?
2. What is the economic rationale behind what he is doing?
3. Is this a better approach than having his concerts sell out quickly?

NPR Planet Money Podcast, June 23, 2013, npr.org (Links to an external site.)

OR

Chapter 5 Discussion Topic

Watch the following video about Price Gouging:Price Gouging – Stossel in the Classroom (Links to an external site.) 

https://www.youtube.com/watch?v=Yr5_049654Q

1. What are the pros and cons of price gouging?
2. From an economic point of view, what is the role of price gouging in markets?
3. Are there instances in which price gouging is an acceptable practice?
4. Why or why wouldn’t price ceilings work in situations of natural disasters?