#NHL #Lockout Tweet of the Day: 10-12-12 Has the NHL been Price Gouging?
We skipped that lame 10-11-12 nonsense.
Instead, here’s your 10-12-12 nonsense:
Biggest diff between this NHL lockout and last one? In last one, at least some fans believed there was something in it for them. Not now.— Damien Cox (@DamoSpin) October 12, 2012
Whatever does he mean?
Oh, Bettman and the NHL promised that ticket prices would fall after the last lockout. They didn’t. From the News and Observer:
The fact of the matter is, the average NHL ticket went up almost 25 percent in the five years following the lockout, according to Team Marketing Report.
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. This rapid increase in prices occurs after a demand or supply shock: examples include price increases after hurricanes or other natural disasters. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. In the Soviet Union, it was simply included under the single definition of speculation.
The term is similar to profiteering but can be distinguished by being short-term and localized, and by a restriction to essentials such as food, clothing, shelter, medicine and equipment needed to preserve life, limb and property. In jurisdictions where there is no such crime, the term may still be used to pressure firms to refrain from such behavior.
Life or limb? No. Property? Depends on who the NHL considers its property – the players, the markets, the stadiums, the fans, or all of the above?
Right now, fans are locked out from NHL games. (Technically players are, but hey, fans paid the bills for this league and are fostering the emotional cost for it right now.)
The term is not in widespread use in mainstream economic theory, but is sometimes used to refer to practices of a coercive monopoly which raises prices above the market rate that would otherwise prevail in a competitive environment. Alternatively, it may refer to suppliers’ benefiting to excess from a short-term change in the demand curve.
Well, that’s cutting closer to the quick.
As we’ve said before, if you want this to stop (these unceasing lockouts), then stop showing up at the box office. Stop buying ten jerseys. Don’t be a tool of the system that abuses you.
As for price gouging, well, we’ll wait for the economists to weigh in (but their expertise won’t likely be called upon unless a second season is lost).
They’ll probably call it “supply and demand.” Sadly, they may be right.
How desperate are we for this one pro hockey league?
next post: #NHL #Lockout Tweet of the Day: The French Connection, AND the Ryan Miller Statue?