Why are rugby world cup tickets so expensive?

Stuff last week ran a poll in their sports section that was guaranteed to get any economist excited. It asked, “What would you rate as a fair price for a mediocre seat at the Rugby World Cup final next year?”

Why is that exciting? Because, assuming “fair price” is the same as “willingness to pay” (WTP), the answers to this survey let us observe the demand curve directly. Continue reading