ALS: thoughts on freedom

Australian Libertarian Society Blog

Ashes price gouging

It’s become fairly well known that security for the first test is very tight. Most people would argue that this is fair enough, but I’m wondering if tight security is covering for a multitude of other sins. People were not allowed to take any bags into the Gabba – and anything left outside in what amounted to ‘lockers’ cost you $5.00 before you could retrieve it. Fans were also shelling out $5.50 for mid-strength beers and paying a fortune for pretty ordinary food from vendors in the ground.

I’m not as sanguine about the War on Terror as John Humphreys, but after this little exercise I’m starting to think that some people – the suppliers of food and beverages at cricket matches, for example - have a vested interest in making things look worse than they are. They can then rip the punters off with impunity.

And if people weren’t told about the $5 locker room/leave your bags at the door charge before hand, I suspect the Trade Practices Act may come into play.

What gives?

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November 24, 2006 - Posted by | Economics

20 Comments

  1. Regarding over-priced food & drinks, there is an argument that such an approach is economically efficient.

    It would be possible to get the same money from a punter by having cheaper food/drinks and higher ticket prices. The reason to prefer a cheaper ticket & expensive food/drink option is that it allows customers to self-select as to who is willing to pay more.

    A cheap bastard can go without beer and have a light lunch while those with more money will pay the extra. That way there is effectively two prices for the cricket: higher price for richer people and lower price for poorer people. It’s called price discrimination and while annoying for customers it isn’t inefficient.

    The same logic applies to high popcorn prices at the movies.

    Though of course the seller cannot explain things this way as it would be unpopular, so they come up with some bullshit excuse about security.

    The unadvertised locker price is a different matter. Btw, currently 4/427 with Ponting on 177. http://www.baggygreen.com.au

    Comment by John Humphreys | November 24, 2006

  2. Problem is the tickets are pretty dear too. My preferred approach would be to have several different vendors in the ground, so they can compete with each other. You’ve still got a captive market, but the monopoly element would be lessened.

    Comment by skepticlawyer | November 24, 2006

  3. And yes, apparently people weren’t told there would be a cost attached to storing their property. I wonder if the punters will just wear it?

    Comment by skepticlawyer | November 24, 2006

  4. I expect the vendors are required to pay the Gabba a fee for being there or, more likely, a percentage of their take. That’s the usual deal these days. Shops in many shopping centres pay a percentage of their take to the landlord too. It probably wouldn’t help much to have multiple vendors and might lead to no vendors being interested in the business.

    Not being an economist I won’t try to analyse it in those terms. However, I reckon you have choices – take some food with you (in your pockets), go without, buy the bare minimum or cop it. Or as I will do, stay away. If enough people did that, the organisers would quickly change their approach.

    I agree that the TPA might apply to the locker situation though.

    Comment by David Leyonhjelm | November 24, 2006

  5. Skepticlawyer, the goal of the Gabba is to make money. The best way to do that is to maintain a monopoly on food/drink sales and price the product at a profit-maximising level. What do they have to gain from allowing competition?

    And the tickets might be expensive, but they could always be $10 more.

    Comment by John Humphreys | November 24, 2006

  6. I bet the government could fix it.

    Comment by terje (say tay-a) | November 24, 2006

  7. No, the government is too busy being the fun police – confiscating beach balls, stopping Mexican waves and yelling at Pommies for playing ‘Jerusalem’ or – now – ‘the Last Post’ on pocket-sized trumpets.

    Comment by skepticlawyer | November 24, 2006

  8. Can’t get excited about demand being fulfilled at a price people are willing to pay, even if it is begrudgingly.

    Boys have done us proud, even bigger smirk on my dial this morning, not many happy faces on the train coming to work this morning.

    Comment by Brendan Halfweeg | November 24, 2006

  9. “Fans were also shelling out $5.50 for mid-strength beers and paying a fortune for pretty ordinary food from vendors in the ground.”

    I really doubt this is because of the war on terror. Sport stadiums have done this since forever.

    Comment by yobbo | November 25, 2006

  10. Ah, but the government is never too busy to do more.
    :-)

    Comment by terje (say tay-a) | November 25, 2006

  11. Bah, that is the free market at its finest. If you don’t want to pay exorbitant prices for food, eat beforehand or don’t go to the cricket. You don’t have a right to go to the cricket so why whinge about it?

    You left out half of the story. If there is a problem then what is the solution? I think Terje has alluded to this also. What is your solution? Legislate so that the Gabba must allow independent food providers? My spidey sense is tingling.

    Comment by Jake Zanoni | November 25, 2006

  12. Just a general cricket whinge, Jake. Frankly I think what John says about price discrimination is right. I’d have just preferred people to be honest and say so, rather than use some bullshit excuse derived from the war on terror ™.

    Comment by skepticlawyer | November 25, 2006

  13. The worst thing about cricket is not the pricing, but the pseudo-fascism creeping in to the security protocols.

    Barmy Army trumpeter escorted from the ground and had his instrument confiscated.

    Barmy Army forcibly made to sit apart from each other so they can’t sing in chorus.

    Fans wearing watermelon hats made to dump them because they can be “used as a weapon”.

    Just ridiculous.

    And this is nothing to do with the free market. Don’t cricket stadiums have to uphold their ends of the contract too? If you hold a valid ticket they can’t kick you out without giving you a refund. Why are they allowed to get away with it time after time?

    Comment by yobbo | November 27, 2006

  14. The fun police really screwed up big time. The Barmy Army trumpeter (the one with the full-size trumpet) had an official permit, and he still got ejected. This along with no Mexican wave, costumes being confiscated etc – the river of bullshit is just getting deeper and deeper.

    And I think you’ll find some very widely drafted ‘conditions of entry’ in tiny print on the back of the ticket. And if you buy the ticket, you’ve agreed to the conditions.

    Comment by skepticlawyer | November 27, 2006

  15. Watching cricket is best done from the comfort of the tv room, with a book and an ear tuned to the box. When the crowd goes wild look up, and watch the action replays in slow motion. Then back to the book. With cold beer from the fridge, or a cold sparkling shiraz.

    Comment by Sinclair Davidson | November 27, 2006

  16. The conditions of entry can’t be “We can eject you for any reason at all”, because that wouldn’t stand up as a valid contract. There has to be consideration on both sides, and consideration subject to the whims of one party is not real consideration.

    Comment by yobbo | November 27, 2006

  17. Now that I think about it they probably ARE allowed to eject anyone at all, but because of what’s printed on the contract, but because they are a licensed venue.

    Licensed venues don’t need a reason to eject you. And when they are charging an entry fee, they really should. This is a fault of our legal system because this clause trumps contract law.

    Comment by yobbo | November 27, 2006

  18. Sinclair,

    Personally I think cricket is best watched with the TV turned off.

    Regards,
    Terje.

    Comment by terje (say tay-a) | November 27, 2006

  19. What rubbish the trumpeter did not have an official permit as was stated above.

    I think you may be up that river buddy.

    It’s cricket for gods sake. You payed to see it so why whinge becasue you want to do something like play with a beachy ball. Go tot the cricket to watch the cricket. Go to the beach to play with a beachball.

    Simple.

    Comment by John | November 29, 2006

  20. Wow John, you must really hate all of those subcontinentals and their rowdy, non-paid for behaviour.

    Better lock them up, eh?

    Comment by Mark Hill | November 29, 2006


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