Throughout this course we have learned about numerous laws of economics. A thorough understanding and adherence to these laws by both firms and consumers alike is imperative for financial success. One key factor that we cannot ignore in these laws is the assumption that all parties will make the “rational” decision with regards to economic concerns. The article that I chose to review indicates what happens when an individual or a firm does not make a rational decision or worse tries to fight the laws of economics. The article is titled “’Hamilton’ Fights the Laws of Economics and Loses” and breaks down interesting financial decisions by the production of one of the most successful Broadway musicals of all time, “Hamilton.” The dramatic title sets the stage for the theme of poor economic choices by the successful Broadway production. The article more specifically hones in on the choices with respect to pricing and the law of supply and demand. I’m sure we all have seen the general success of the musical “Hamilton” but the issue brought up in the article indicates that they are not enjoying the economic success that they could be enjoying. …show more content…
The face value of the tickets is actually quite low, usually less than $200. (Nocera, 2017) The show’s producer, Jeffery Seller pushes for lower ticket prices to allow a greater audience to see the acclaimed musical. This is where the rational assumption is called into question. One assumption that we make throughout our lessons is that firms will make pricing decisions in order to maximize profit. However, in this case the firm is making a conscious decision to charge lower ticket prices. Why then do we only hear about ridiculous prices for the show “Hamilton?” The answer is simple; secondary