Tuesday, January 24, 2006

Qatar arrests ticket scalpers for largest IPO :: Gulf News

For those of us teaching economics, here is a nice example of ticket scalping. Economic theory tells us that ticket scalping is a good thing; assuming prices are so low* that lines appear, ticket scalping helps ensure that tickets get into the hands of those who value them the most.

Some extracts from the article:
"We've had some people trying to sell their positions in the queue to others. This is not permitted and is not being tolerated," a police officer said. A 20,000-seat Doha stadium has been hired to process applications but because of a lack of electronic applications, investors have been queuing for hours outside the stadium.

"I've seen some people sell their tickets for up to 1,000 riyals ($274.9) - all depending on how good a [position in the queue] they have," said an official of Qatar National Bank. "Some investors have been offering to take application papers from other people further down the queue, and they're making some pretty good cash from that too," he added.

Authorities have deployed riot police at the stadium following a scuffle that broke out after the offer opened last week.
Scuffles are an excellent way to increase the buzz about your IPO.

*Why prices are that low is another question.

2 Comments:

Blogger waterboy said...

Link doesn't seem to work...

3:05 PM  
Blogger John B. Chilton said...

Thanks. Link should be working now.

4:40 PM  

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