Hey, CFB. Am I paying for "overpriced" beer at the airport r

[nolanvt]

Obviously, selling beer inside a stadium isn't subject to anti-trust restrictions, but that doesn't mean that stadium prices represent a "fair market price".

"Fair" ain't got nothing to do with it. There's a premium for buying beer at the stadium.

Yes it's a premium, but that doesn't make it a market price. It's an inflated price - that's the whole point.

If you ask me how much to buy my house and I tell you $1 million, even if you were to actually be stupid enough to agree to it, the market price of my house is not $1 million. It's the same thing in a stadium - there IS NO FREE MARKET inside a stadium and so the price you pay is not the fair market price. The fair market price is whatever a beer costs at the grocery store down the street from the stadium.

"Fair market price" is all in the eyes of the market participants. If ip wants to pay $10 for a beer at Citi Field tomorrow, then that's the market price at the time of that transaction (he won't be the only one in a crowd of 40,000). Now, people won't pay $10 per beer at a gas station or liquor store, but that's a different market with different market variables altogether.

Gotcha.. nothing that has ever been purchased by one person is overpriced.

Market participants disagree on value all the time, but when two parties willingly transact business at a baseball game (e.g. buying beer), the price of that transaction is the market price for beer at a baseball game.

[nolanvt]

Haha, nope. They're off the supply and demand equilibrium, getting you to pay more to cover the cost of security for drunks at the game.

You're only aiding my argument with your contention - additional market variables affecting the price of beer at games.

[awesome guy]

Haha, nope. They're off the supply and demand equilibrium, getting you to pay more to cover the cost of security for drunks at the game.

You're only aiding my argument with your contention - additional market variables affecting the price of beer at games.

LOL. Oooooook

[CFB Apologist]

Obviously, selling beer inside a stadium isn't subject to anti-trust restrictions, but that doesn't mean that stadium prices represent a "fair market price".

"Fair" ain't got nothing to do with it. There's a premium for buying beer at the stadium.

Yes it's a premium, but that doesn't make it a market price. It's an inflated price - that's the whole point.

If you ask me how much to buy my house and I tell you $1 million, even if you were to actually be stupid enough to agree to it, the market price of my house is not $1 million. It's the same thing in a stadium - there IS NO FREE MARKET inside a stadium and so the price you pay is not the fair market price. The fair market price is whatever a beer costs at the grocery store down the street from the stadium.

"Fair market price" is all in the eyes of the market participants. If ip wants to pay $10 for a beer at Citi Field tomorrow, then that's the market price at the time of that transaction (he won't be the only one in a crowd of 40,000). Now, people won't pay $10 per beer at a gas station or liquor store, but that's a different market with different market variables altogether.

Gotcha.. nothing that has ever been purchased by one person is overpriced.

Market participants disagree on value all the time, but when two parties willingly transact business at a baseball game (e.g. buying beer), the price of that transaction is the market price for beer at a baseball game.

I have never once argued that beer is purchased willingly at a ball game- never, and I never hinted that transaction wasn't valid/ or the real world in terms of convenience and lack of competition... I know you are digging your heels in a doubling down on your -stupid- point...so let's cut to the chase..

Can you give me an example of something- anything- that is overpriced?

[TheH2]

Obviously, selling beer inside a stadium isn't subject to anti-trust restrictions, but that doesn't mean that stadium prices represent a "fair market price".

"Fair" ain't got nothing to do with it. There's a premium for buying beer at the stadium.

Yes it's a premium, but that doesn't make it a market price. It's an inflated price - that's the whole point.

If you ask me how much to buy my house and I tell you $1 million, even if you were to actually be stupid enough to agree to it, the market price of my house is not $1 million. It's the same thing in a stadium - there IS NO FREE MARKET inside a stadium and so the price you pay is not the fair market price. The fair market price is whatever a beer costs at the grocery store down the street from the stadium.

"Fair market price" is all in the eyes of the market participants. If ip wants to pay $10 for a beer at Citi Field tomorrow, then that's the market price at the time of that transaction (he won't be the only one in a crowd of 40,000). Now, people won't pay $10 per beer at a gas station or liquor store, but that's a different market with different market variables altogether.

Yeah, it really isn't a hard concept. Fair Market Price is the going price in the market. The formal definition of fair market value: “the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge or relevant facts”

There is nothing in there about equilibrium price. The fair market price may result in over payment (it does all the time, just look at the history of corporate acquisition) or go to an econ textbook and look up winners curse (initially about auctions but the same concept holds true for corporate takeovers). That doesn't mean the market price fully represents the underlying value of the asset or beer for that matter. I've certainly overpaid for pizza or beer and many other things. But that doesn't mean it wasn't the fair market value, even if it turned out to be not so fair to me in hinsight.

If someone purchases a Bud for $100, that makes it the market value for that specific bottle of bud. It's a pretty crappy market value, and probably not the best comp for determining the price of another bottle of bud, but it is still the "fair market value." People should take a class in experimental economics. It's a great way to learn about markets.

[Uprising]

Can you give me an example of something- anything- that is overpriced?

Your gambling advice. Even though you give it for free, you should have to pay for being so wrong.

[TheH2]

Can you give me an example of something- anything- that is overpriced?

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....
Edit: My investment advice!

[CFB Apologist]

Can you give me an example of something- anything- that is overpriced?

Your gambling advice. Even though you give it for free, you should have to pay for being so wrong.

Oh, sorry... minus money line bets- especially deep ones are the norm and great odds... my bad. When you learn what a money line bet actually is, please come talk to me. You are very confused on this.

[CFB Apologist]

Can you give me an example of something- anything- that is overpriced?

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....

Not with Nolan's brillant economic theory..people buy gold, facebook stock, etc. thus at that moment it is not overpriced.

[TheH2]

Can you give me an example of something- anything- that is overpriced?

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....

Not with Nolan's brillant economic theory..people buy gold, facebook stock, etc. thus at that moment it is not overpriced.

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

[CFB Apologist]

Can you give me an example of something- anything- that is overpriced?

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....

Not with Nolan's brillant economic theory..people buy gold, facebook stock, etc. thus at that moment it is not overpriced.

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

That is my exact point.. there is such a "thing" as "overpriced" even when there is someone willing to pay

[BigDave]

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

When there is a monopoly, the price of something IS NOT AUTOMATICALLY FAIR MARKET VALUE.

The fair market value is what a willing and knowledgeable buyer and a willing and knowledgeable seller would do the transaction for. Inherent in the definition of "willing" is that you are not under any sort of duress or pressure. If the seller has a monopoly, then the buyer cannot be considered to be "willing" and so even if the transaction takes place, you can't automatically assume that the price was, in fact, the fair market price.

If there are five grocery stores and each one sells five brands of beer, then the price that they sell it for is affected by market forces and can be presumed to be the fair market price. (Yes, it's possible that there is collusion or some other anti-market price fixing going on, but in general, we would assume that their price is the fair market price.)

[ip_law-hokie]

Can you give me an example of something- anything- that is overpriced?

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....

Not with Nolan's brillant economic theory..people buy gold, facebook stock, etc. thus at that moment it is not overpriced.

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

That is my exact point.. there is such a "thing" as "overpriced" even when there is someone willing to pay

If you allow for revisionist history, sure.

for example, necks who are upside down on their neck houses purchased overpriced real estate. bet we know this from history.

people who took the cubs -110 negative money line last night did not purchase as overpriced negative money line bet. we know this from history, because the Cubs won last night.

I think the problem we are having is that you are confused about the different between objective measures and subjective feelings. I can understand how it could be tough for you, as history undoubtedly proves that your subjective feelings will always later turn into objectively verifiable fact. Hope this helps.

[CFB Apologist]

Can you give me an example of something- anything- that is overpriced?

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....

Not with Nolan's brillant economic theory..people buy gold, facebook stock, etc. thus at that moment it is not overpriced.

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

That is my exact point.. there is such a "thing" as "overpriced" even when there is someone willing to pay

If you allow for revisionist history, sure.

for example, necks who are upside down on their neck houses purchased overpriced real estate. bet we know this from history.

people who took the cubs -110 negative money line last night did not purchase as overpriced negative money line bet. we know this from history, because the Cubs won last night.

I think the problem we are having is that you are confused about the different between objective measures and subjective feelings. I can understand how it could be tough for you, as history undoubtedly proves that your subjective feelings will always later turn into objectively verifiable fact. Hope this helps.

Whatever commuter low ranked law school that gave you a bogus diploma obviously did not teach you what "objective" is, because the people that took the cubs at -110 last night, put up 11 dollars to win 10 dollars- objective data, facts. Betting more to win less is a terrible bet, especially when looking at it over time, objectively using data of course. That is what your dumb ass fails to grasp here. "Betting a lot to win a little" is exactly what a negative money line bet is... but they didn't cover that at Strayer Law School

[ip_law-hokie]

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

When there is a monopoly, the price of something IS NOT AUTOMATICALLY FAIR MARKET VALUE.

The fair market value is what a willing and knowledgeable buyer and a willing and knowledgeable seller would do the transaction for. Inherent in the definition of "willing" is that you are not under any sort of duress or pressure. If the seller has a monopoly, then the buyer cannot be considered to be "willing" and so even if the transaction takes place, you can't automatically assume that the price was, in fact, the fair market price.

If there are five grocery stores and each one sells five brands of beer, then the price that they sell it for is affected by market forces and can be presumed to be the fair market price. (Yes, it's possible that there is collusion or some other anti-market price fixing going on, but in general, we would assume that their price is the fair market price.)

your post has merit, but it's not correct to call licensing contractors to sell beer on property that you own a monopoly. but that's probably an overly technical point.

[ip_law-hokie]

Gold a few years ago, Facebook stock, a $10 budweiser at a ball park (to me especially when I can get a better beer for $9), bottles of water out of a vending machine, posts on UWS.....

Not with Nolan's brillant economic theory..people buy gold, facebook stock, etc. thus at that moment it is not overpriced.

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

That is my exact point.. there is such a "thing" as "overpriced" even when there is someone willing to pay

If you allow for revisionist history, sure.

for example, necks who are upside down on their neck houses purchased overpriced real estate. bet we know this from history.

people who took the cubs -110 negative money line last night did not purchase as overpriced negative money line bet. we know this from history, because the Cubs won last night.

I think the problem we are having is that you are confused about the different between objective measures and subjective feelings. I can understand how it could be tough for you, as history undoubtedly proves that your subjective feelings will always later turn into objectively verifiable fact. Hope this helps.

Whatever commuter low ranked law school that gave you a bogus diploma obviously did not teach you what "objective" is, because the people that took the cubs at -110 last night, put up 11 dollars to win 10 dollars- objective data, facts. Betting more to win less is a terrible bet, especially when looking at it over time, objectively using data of course. That is what your dumb ass fails to grasp here. "Betting a lot to win a little" is exactly what a negative money line bet is... but they didn't cover that at Strayer Law School

[emoji8]

[TheH2]

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

When there is a monopoly, the price of something IS NOT AUTOMATICALLY FAIR MARKET VALUE.

The fair market value is what a willing and knowledgeable buyer and a willing and knowledgeable seller would do the transaction for. Inherent in the definition of "willing" is that you are not under any sort of duress or pressure. If the seller has a monopoly, then the buyer cannot be considered to be "willing" and so even if the transaction takes place, you can't automatically assume that the price was, in fact, the fair market price.

If there are five grocery stores and each one sells five brands of beer, then the price that they sell it for is affected by market forces and can be presumed to be the fair market price. (Yes, it's possible that there is collusion or some other anti-market price fixing going on, but in general, we would assume that their price is the fair market price.)

Fair point. I think that works at the extremes - $100 for bud, would then be the market price (and a bad comp for future prices) but not the fair market price.

As for the price of beer at a ballpark, I feel like that is an argument for lawyers. I'd say it is the fair market price, even if the ballpark is a monopolistic market. There are still alternatives, drink before, drink after, etc. I'm sure the supreme court would be split 54-4

[Uprising]

Oh, sorry... minus money line bets- especially deep ones are the norm and great odds... my bad. When you learn what a money line bet actually is, please come talk to me. You are very confused on this.

[emoji23]

[awesome guy]

It's fair market value, but it doesn't mean it isn't overpriced, it just isn't overpriced to the buyer.

When there is a monopoly, the price of something IS NOT AUTOMATICALLY FAIR MARKET VALUE.

The fair market value is what a willing and knowledgeable buyer and a willing and knowledgeable seller would do the transaction for. Inherent in the definition of "willing" is that you are not under any sort of duress or pressure. If the seller has a monopoly, then the buyer cannot be considered to be "willing" and so even if the transaction takes place, you can't automatically assume that the price was, in fact, the fair market price.

If there are five grocery stores and each one sells five brands of beer, then the price that they sell it for is affected by market forces and can be presumed to be the fair market price. (Yes, it's possible that there is collusion or some other anti-market price fixing going on, but in general, we would assume that their price is the fair market price.)

Yep, gota have a market to have a market price.