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Source: ONE News -
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The price of Rugby World Cup tickets is too low, meaning people that don't like rugby are effectively subsidising rugby fans, says a senior economics lecturer.
Eric Crampton from the University of Canterbury says prices have been set below their market value, encouraging scalping.
The New Zealand Rugby Union sets ticket prices but the event is largely subsidised by the government.
"You've got to wonder why they are setting prices too low when the government is already shelling out, what, half a billion dollars on the Rugby World Cup anyway. Why are we throwing money away?"
Ticket scalping is illegal under the Major Events Management Act 2007, which imposes a maximum penalty of $5000.
The Trade Me auction website has stepped in to stop people from selling Rugby World Cup tickets online for profit, removing some dubious semifinal ticket listings.
Crampton said there would be no need for these moves if Rugby World Cup ticket prices were set higher and demand matched supply.
"If the ticket prices were such that [there are] as many people wanting to buy seats as there are seats available, there'd be no scalping. You only get that when prices are set too low," he said.
Crampton also dismissed the argument that the influx of tourists and business the Rugby World Cup will bring will repay the costs of holding the event.
"The vast consensus of the academic economic literature is that subsidising stadiums and events is massively wasteful."
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