Glastonbury music festival tickets Essay Example | Topics and Well Written Essays - 1500 words

Glastonbury music festival tickets - Essay Example Comparing this to the model characterized as efficient equilibrium, where utility functions increase continuously, efficiency appears not to have been a part of the outcome for this particular event. This paper aims to analyse and compare the varied macroeconomics pricing mechanisms as well as the applicable strategies on ticket allocation, all in a bid to determine the best mechanism that would assist work toward a Pareto efficiency balance for this record-breaking event. The general price theory associates the price of a commodity to vary directly with the value of the commodity (Besanko Braeutigam 2013). The theory further draws an analogy between the value of a commodity and its scarcity or ease of its availability. In a market situation, sellers aim at an optimal price for their commodities while buyers to the contrary opt for minimal price set on commodities. In an average or normal situation, it is the intersection between the two varied prices that ensures that markets are cleared without any excess or surplus on either side. A market clearing condition is thus achieved whenever the supply of commodities equals or meets the total quantity of goods or commodities demanded. For the ticket prices set for the Glastonbury music festival, the price was not at a market clearing level since the demand for tickets by willing buyers overwhelmed the amount of tickets available for sale. Under pure exchange price theory, a trader should be able to balance his endowment in the market with his possessed commodities. With such a balanced allocation of endowments and possessed commodities, Pareto efficiency as outlined in Besanko Braeutigam (2013), may be said to have been achieved which was not the case for the music event. The different strategies or economic paths available and apparently of best application to the sale of Glastonbury music festival tickets, and preferably retain or enhance efficient equilibrium have varied merits