Loss Aversion and the World Series: It's Not Popcorn, Peanuts and Crackerjacks Anymore
Listen to this NPR podcast about the sale and scalping of World Series tickets if you want to experience the loss aversion bias while standing in line to buy tickets for the great American passtime.
The quote to listen for? Hometown purchasers who say "someone offered us $500 each for our places in line; no way" or "not on your life." Something along those lines. Click on the audio for the exact quote.Online and broker ticket prices currently range from "$25 per seat for Game 4 at Coors Field, home of the Rockies, to $20,589 for a potential Game 7 at Fenway Park."
Here's the point. These guys would not likely pay $500 per ticket to go to the game, but will not give up the right to buy a ticket for $500.
Losses loom larger than corresponding gains. Loss aversion.