LeBronomics Essay Example | Topics and Well Written Essays - 500 words

LeBronomics - Essay Example According to the speakers there is a â€Å"shadowy-underworld market† where the real market price is derived. When a black market exists, the cost to the government can be measure in terms of foregone tax income. Moreover, information regarding black markets is unavailable to the policy makers. Therefore the income derived from black market operations is excluded from national accounting such as calculation of the GDP. Predictability of the economic data can decrease due to black market operations. Therefore, the efficiency and effectiveness of the government policies also decreases. These can be considered as the social costs of black market operations. Unavailability of information is a typical characteristic of the black markets. According to the speakers there are agents who buy the tickets to basket ball games and resell them at a higher price and earn a profit. It is unclear how many middle men are involved in the market chain and whether LeBron James’s income ref lects the actual price of tickets sold in the secondary market. Nevertheless the speakers claim that like in other markets â€Å"risk and uncertainty† affect the secondary market operation of basket ball tickets in the USA. The second approach discussed in the podcast involved utility concept. It measures the sold benefits as well as the non market values. Example, the local community gains utility when LeBron James lives in their city. Therefore, he adds value to the Gross National Happiness of the economy. Moreover, viewers gain utility by meeting friends, and associates at the basket ball games. Therefore, LeBron James adds various utilities to the economy that cannot be quantified absolutely. In economics utility is measured by a hypothetical unit called the utile. The absolute utile value which is gained by watching LeBron James playing basket ball is impossible to define however, a