Wednesday, September 21, 2011

Mayweather Vs. Ortiz

The "Money" Mayweather Vs. "Vicious" Ortiz fight racked in nearly 2 million dollars. In addition it cost $59.99 for anybody who ordered it on pay per view but it was also held at The MGM theater in Las Vegas, Nevada and they always rack in MAJOR MULA.! Alot of people showed up the fight including celebrity like Puff Diddy, Jamie Foxx, and Mark Wahlberg. The MGM seats at least 16800 people and when there's alot of people and people selling food the demand is going to raise. Why? because the more people the more food that is going to be purchased and in addition to that the food is going to be cheap. As demand goes up the prices go down, it's a inverse relationship. The viewing of this fight is a luxury it not something that we actually need it just something people go see to be excited, it's an inelasticity. The fight is something we want to see not something we need to see. Mayweather funded the fight so muc of the money is going to go back to him, MGM will get there cut, and Ortiz lost so there's no telling how much money he is going to receive. Its just alot of money gained in a matter of hours and on top of that it wasnt a really good fight. He cheap shooted him in the 4th round and won. ESPN named the fight "The Weird Classic." So never boxer in a fight funded by Mayweather Productions it all just a big money scam.! $$$$$$$$$$$$$$$$$$$$$$$$

5 comments:

Smith said...

If the fight is a luxury it would be an elastic good. Why do people pay so much money to watch people fight?

Upper School Government and Economics said...

I don't agree with the idea presented in this blog post regarding prices of food at the Mayweather vs. Ortiz fight. The author wrote that as demand goes up, the food prices will be cheaper. However, this isn't true at most events like this. Because the host of the event doesn't usually allow outside food or drinks, they realize people will want to buy food and drinks at the event. The host can overcharge the cost of concessions because they know the demand of the people are very high and they have to make the choice of paying more for food at the event, or being hungry until after the event is over and then go to buy food somewhere else.

Niko P.

Upper School Government and Economics said...

I disagree with the author's statement: "As demand goes up, the prices go down." It is true that as the prices go down, demand may go up. However, increasing demand would not result in the decrease of prices. The people selling the food would realize that most of the audience has an inelastic demand for purchasing food during the events. Seeing how many people show up at these events, they would want to raise the prices and increase the profit. I also disagree with the author’s idea that the demand of the viewers is inelastic. He is right in saying that viewing the fight is a luxury. Not everyone can afford to attend events like this one. By labeling the demand as inelastic, the author is saying that no matter how high the prices are the people’s demand will not change. Everyone will still attend the event. This viewpoint seems unrealistic to me. If prices were to leap dramatically, demand would definitely go down. Attendance rates would drop instantly. I would say this luxury is more elastic than inelastic in terms of demand.

-Morgan C.

Jacob Burdett said...

I disagree with the statement that food will be cheap at the event. At sporting events such as fights, the only food available to purchase is supplied by the venue, giving them the freedom to jack up their prices to whatever amount they want. They know that most people will buy either a drink or food, or both, so the demand is not completely inelastic, but it is inelastic to an extent. Having food and drinks at the fight are not a neccessity, but they are a luxary, just like going to the fight. People that are willing to spend the money on the luxary of the fight are probably willing to spend the money on food and drinks so the venue is able to charge a high price.

Eugene L III said...

I disagree that a fight like this one is a big money scam. In thoughts of sports teams play other teams to see which one is better but they get paid for it. The income for the competitors comes from the seats they sell, endorsements and many other ways. So is the NFL a scandal. No it’s a sport and a very popular sport as is boxing. When a fight come on many people want to see. The demand for seeing this fights whether in person or pay per view is high especially when the supply (how often these fights come along) is low. Many people are willing and ready to pay the expenses to be entertained by two men beating up each other and if they will do it why not charge as much as possible. Like any other company they are trying to maximize profit so they charge the highest amount the audience is willing to buy. Self interest in watching this for many people is high and we are the people who are making them rich.