Monday, February 7, 2011

Opportunity Cost

Watch this video about a homeless couple that wins a pair of super bowl tickets.  Post a comment on your opinion if they should keep the tickets or sell them.

Click to watch video clip


32 comments:

  1. FIRST AGAIN!


    It was interesting that they used the interview as a marketing technique to get jobs...

    Will they be hired because they weren't mercenary, or will people think they're idiots?

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  2. That is a very intresting idea Collin. I hadn't thought of that. I don't think that it is a mercenary idea, but I also don't think people will be idiots. This is due to the fact that the couple's view of integrity is more important than that of money. Would you want to hire a person of great integrity or that of someone who only wants money.

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  3. That is a very intresting idea Collin. I hadn't thought of that. I don't think that it is a mercenary idea, but I also don't think people will be idiots. This is due to the fact that the couple's view of integrity is more important than that of money. Would you want to hire a person of great integrity or that of someone who only wants money.

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  4. This package could have provided this couple around $20000, if sold. This would not provide home and decent living conditions for them, but it would be enough to get the money going through stock trade or some kind of small business. So there comes a question: how did they get homeless? Was it bad luck or wasted money? They said they were looking for a job, so there was some kind of movement to get rid of their homeless status, but not enough skill or confidence in their financial abilities. If I were in their place, I would have sold the tickets to at least try to get myself out of poverty. Wouldn't have anything to lose anyway - except for the Superbowl, to which I could have returned in some years in case my investment or business had been going well. In their case - well, I think it was a good decision to just go and enjoy the experience, because this couple doesn't seem to be willing to risk their opportunity for a chance of a better life.
    - Ekaterina

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  5. Yes, you have a point, but does having finacial confidence equals money or just stablity? Is poverty bad or is it beneficial to learn what the other side of life is like? I wonder too, How the couple became homeless. Yet, it doesnt matter to me how but if they are truely trying to get out of being homeless.
    -kirsten

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  6. Well, I think poverty can only be fun if you are rich and decided to try living in the street for a week or two. Stability is something they are not willing to give up, because there is a chance of failure as well as a chance of success. Maybe they didn't even think they could do something with that money other than spend it.

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  7. I don't think what they need is money. What they need is a job. Selling the tickets would only help them if it gets them on their feet enough to get a job. For them going to the Superbowl was a once in a life time opportunity. Selling the tickets thet probably would never make it to the Superbowl and maybe would get back on their feet. Keeping the tickets they got to enjoy likley the best weekend of their lives and if they are determined enough they will eventually make it out of poverty.
    -Harry

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  8. Good point Harry, I think that selling the tickets probably wouldn't be a good idea if they don't think it will last, and going to the game was a good choice for them because they took advantage of a once in a lifetime opportunity. The circumstances of becoming known also might help them in their search for a job, which will help them get out of poverty, if they use this advantage wisely.
    -Emily

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  9. So I guess if you do nothing for long enough good things will come your way. I think it's time I changed my entire out look on life. If I do nothing and get somthing in retern thats a perfect opertunity cost...maybe there was somthing more I was suposed to have taken from this.

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  10. Well I think that when given a once in a life time opportunity like this, its hard to be rational and think whats the best thing to do. They are homeless and could sell this package for big cash money, but instead they are going to the game. They will probably never get this chance again so I understand, but I think it would have been smarter to sell them and try and get their lives back in line.

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  11. That's right, cash will not help them unless they put this money to work. So the decision is basically either they feel they could do it and get out of poverty or they want to have a good time and try to find a job afterwards.

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  12. So... there wasn't an opportunity cost because they wouldn't have used the money anyway?

    Plus they have to worry about taxes.

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  13. I would sell those tickets and I am not homeless. With the money I would buy something that would last a lot longer than just a few days of joy.

    They could have sold thoose tickets and sure had the oportunity cost of lossing the oportunity but they would gain a ton of money.

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  14. KIRSTEN
    Can money create happiness?

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  15. Money can create a base where you don't have to think about money and do whatever you want to make yourself and the world around happy. That's my point. I wish I had that opportunity. I would sell the tickets, divide money in two, lose one half learning how to trade on the stock market, multiply the other one having learned how to do it, get a small shop going to have a slice of bread to eat and develop it until I have enough for bread with butter and caviar (weird russian saying).

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  16. I support them in their decision to go to the Super Bowl. The $20,000 would techinically not get them out of poverty. They don't need the money, since it would not last long if they rented an apartment. That, plus other expeditures including food, $20,000 does not cover much. What they obviously need are jobs. Enjoy this once in a life time chance, and when they come back, continue to pursue a job.

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  17. I don't think the money would have gotten them far, best to go enjoy the superbowl. Perhaps with all the media coverage they have what they really needed- a job!

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  18. This situation seems fairly simple to me. It really isn't much more than a case of present pleasure/future suffering vs. present loss/future opportunity. Selling the package wouldn't provide any sort of sustenance for a year or longer, but it would act as an excellent starting point for a person looking for lifestyle advancement Realistically, its a decision of seizing an opportunity that would help a destitute individual form some sort of foundation for the future, or rather enjoying a football game before returning to a lifestyle of squalor.

    -Tay

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  19. I think the major points have been covered however another thought is what are they used to? they are used to the poverty so it appears much worse to us than it necessarily appears to them. If they were to sell the tickets and successfully invest the money, the lifestyle switch would probably be such that they would be unable to survive for long. Meaning in the long run taking the opportunity was probably a safer bet than attempting to invest.

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  20. Well I think that they should have sold the tickets because they will have to have money to get food for the time while they are still down. Food and shelter is more of a necessity while going to a Superbowl is not even close to a necessity.

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  21. I think they should go to the Super Bowl. Although they could make 20,000 dollars by selling the tickets, in less than a year they would be out of money again. They are not living on the streets, they are living in a homeless shelter. 20,000 dollars would provide them with little more than the shelter provides. I think it would be much better for them to enjoy a once in a lifetime experience than it would be for them to struggle to survive on their own without the help of the shelter. Hopefully they will be able to get a job. A job is what they really need to be successful.

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  22. Sell the tickets and actually start to live! Sell them and run to actually being able to afford a house, gets stabile jobs, and become a part of the adult world of paying taxes and coming home to a roof over your head and a meal on your plate.

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  23. I originally thought it would have be smarter for them to have sold the tickets to have a chance at getting back on their feet; that's what I would do if in that situation. But what exactly would they do with the money? Would they know where to prioritize the money in order to eventually have long-term financial stability? I think they should take advantage of the once-in-a-lifetime experience and go to the Super Bowl.

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  24. This couple was given a great opportunity, but they still had the choice of taking what they had and investing it to their futures. I think a big part of their decision in going to the game rather than selling their tickets was based on morals, rather that opportunity cost. The woman in the video stated several times that they wanted to respect the contest's purpose of allowing homeless people to go to the game. Yes, it would probibly be better financailly to have sold the tickets and save the money, which I'm sure many people in this situation would have done, but this particular couple had more on their minds. Though it should be taken into account that they said they did discuss saving any money that would be left over from the trip.

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  25. The homeless couple should not sell their winning Super Bowl package to gain money and better their life for each other. If they do not sell the package they will go further into any debt that they are in because of the taxes that they acknowledge they would have to pay. The couple could go and enjoy a very memorable weekend but would it be worth the pain and hardships that would result in the future? I don’t think it would.

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  26. They should have sold their tickets. I understand that it is very exciting to have those tickets and that it was a once in a lifetime thing, but in the long run, being financially stable is more important than having a few hours of good time. Sure, they would remember that experience forever, but they would have to face the consequences when they return to their normal lives on the street.

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  27. Money won't be very beneficial to these people unless they use it to help themselves get jobs. Spending money only lasts so long. I think the couple could still keep the tickets, it is a once in a lifetime opportunity. They money from the sold tickets won't get them far, a job will.

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  28. In the practical sense I would say sell the tickets, get yourself some money, and get back on your feet. But in the other sense I say you'll never have an opportunity like this again, your homeless. Go out enjoy yourselves, go wild. But, come back knowing you have to become more responsible if you ever want a chance like this again.

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  29. The woman in the video said several times that they had lost everything, which could mean anything really. People lose everything in a fire, but if they are smart and abide by the law then they have home insurance which should cover some of their cost. If these people lost everything than either they were stupid and not saving their money and dumping it towards insignificant causes, or they were just broke in the first place and over charged their credit cards, she didn't say which. Obviously they were not financially stable to begin with.
    If Alex is correct and they can make somewhere around twenty grand for their tickets, that won't get them very far. They won't know how to save it, and if they don't get a job they won't be able to rent or make payments on a house. If they do go to the game and save the little money they have left of the $500, they won't have enough for anything.
    Pretty much, these people are screwed either way, so they should probably just have a good time and go to the game.

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  30. The great thing about the package is that they could sell the tickets and still enjoy an all-expenses paid vacation to Dallas. Even without game tickets, they’ll still be put up in a nice hotel when they can spend the whole weekend. $5,000 is probably enough money to pay for a year long lease at an apartment and buy some nice clothes. Having a permanent address and being clean and presentable are two of the hardest things for homeless job seekers. This money could be the first step in getting them off the streets forever.

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  31. Sell the tickets, no questions asked. They lost everything and that money could take them pretty far. Sure seeing the game is a once in a lifetime opportunity, but is that really worth throwing away money that could be used to survive?

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  32. I think they should go to the super bowl, because even if they did sell it, they would not be able to stabalize themselves on that money for long.

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