Question

Suppose that your college decides to give away 1,000 tickets to the football game against your school's biggest rival. The athletic department elects to distribute the tickets by giving them away to the first 1,000 students who show up at the department's office at 10 A.M. the following Monday. a. Which groups of students will be most likely to try to get the tickets? Think of specific examples and then generalize. b. What is the opportunity cost to students of distributing the tickets this way? c. Productive efficiency occurs when a good or service (such as the distribution of tickets) is produced at the lowest possible cost. Is this an efficient way to distribute the tickets? If possible, think of a more efficient method of distributing the tickets. d. Is this an equitable way to distribute the tickets? Briefly explain.

Short answer

The most likely students to try getting the tickets are those with interest, time availability, and potential beneficial reasons. The opportunity cost to students is whatever they are having to give up to be able to stand in line at that time. Though this method might be cost-effective for the college, it isn't necessarily the most efficient as it doesn't consider students' individual valuations or time. An online sale or lottery could be more efficient. This distribution might not be equitable as it favours students who can make themselves available at a specific time.

Step-by-step solution

Identifying the most likely student groups

Groups likely to try getting the tickets would be ardent football fans, enthusiasts who look forward to school activities, or those who follow the rivalry keenly. Students who have spare time around 10 A.M., or even those who might want to sell these free tickets for a profit, would also be likely to try. To generalize, students with interest, time availability, and potential benefit from these tickets would be the likely candidates.

Calculating the opportunity cost

The opportunity cost for students in this situation is what they are giving up to get these tickets. This could be a lecture they miss, the chance to sleep in, the time they could have spent studying or socializing or any other activity that they give up to stand in line for these tickets.

Evaluating productive efficiency

From the perspective of the college, giving away tickets to the first 1,000 students who show up involves minimal cost. However, this isn't necessarily the most efficient way, as it doesn't consider students' individual valuations for the tickets and the time costs involved. A more efficient method might be to sell the tickets online or conduct a lottery, which could minimize the time cost for students and resources spent managing the distribution.

Assessing equity of ticket distribution

This way of distribution might not be equitable as it favours those who have time to line up at 10 A.M., potentially excluding others who may have classes or work commitments at that time. It might not be fair to students who are equally willing to attend the game but are unable to physically stand in line due to various reasons.

Key concepts

Productive Efficiency

Productive efficiency is about producing goods or services at the lowest possible cost.
In the context of distributing football game tickets, giving them to the first 1,000 students who show up might seem cost-effective at first glance.
This method eliminates the need for complex logistics or digital systems, saving on administrative costs.

• However, this method fails to consider the time students spend queuing, which translates into a hidden cost.
• Moreover, it doesn't ensure that tickets reach the students who value them the most.

Alternatives like an online lottery or sale could be more efficient.
These methods reduce the time students spend and could also optimize resource use by decentralizing the process.
This approach aligns better with the concept of productive efficiency by not just minimizing costs but maximizing value.

Equitable Distribution

Equitable distribution is about fairness in the way resources are shared among people.
With the current first-come-first-served approach for ticket distribution, fairness is questionable. Students who have the flexibility to skip class or other responsibilities benefit most.

• This biases the process against students who may have essential commitments like jobs, sports, or necessary classes.

An alternative could involve a random lottery system that doesn't require physical presence at a specific time, making it fairer for all.
This method ensures that all students have an equal opportunity to receive tickets, regardless of their morning schedules or obligations.
Equity focuses not only on equal access but also on ensuring that access does not disproportionately favor certain groups.

Student Priorities

Understanding student priorities is essential when distributing tickets. Students have different schedules and commitments, such as classes, work, and extracurricular activities.
The current system of requiring students to be present at a specific time does not account for these individual differences.

• Prioritizing flexibility and accessibility in the distribution process can help accommodate these diverse obligations.

Providing multiple avenues for obtaining tickets, like online booking, can cater to various priorities.
This approach respects different student schedules and commitments, allowing them to participate in school events without significant inconvenience.
It emphasizes the college's understanding and consideration of the student body's diverse needs and priorities.

Time Cost

The time cost represents the value of what students give up when standing in line for tickets.
Time is an invaluable resource, and students may sacrifice classes, study time, or relaxation to wait for these tickets.

• This opportunity cost can be significant, impacting academic performance or personal well-being.

By reassessing how tickets are distributed, the college can help mitigate these costs.
Methods like electronic ticket distribution allow students to save time, enabling them to focus on other important activities.
This reduction in time cost aligns with enhancing student satisfaction and promoting a balanced college experience.