Concept of willingness to pay with a thought experiment

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Reference no: EM131009869

Let's explore the concept of willingness to pay with a thought experiment. Imagine a specific sporting, entertainment, or cultural event that you would very much like to attend -perhaps a World Cup match, the seventh game of the World Series, a Rolling Stones concert, or a Kathleen Battle performance.

a. What is the most you would be willing to pay for a ticket to the event?

b. Imagine that you won a ticket to the event in a lottery. What is the minimum amount of money that you would be willing to accept to give up the ticket?

c. Imagine that you had an income 50 percent higher than it is now, but that you didn't win a ticket to the event. What is the most you would be willing to pay for a ticket?

d. Do you know anyone who would sufficiently dislike the event that they would not use a free ticket unless they were paid to do so?

e. Do your answers suggest any possible generalizations about willingness to pay?

Reference no: EM131009869

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