Are Met Gala Tickets Too Cheap? Diving In

In this episode of Diving In, Justin Wolfers breaks down the economics of the Met Gala using two big ideas from economics: signaling and non-price competition. The basic point is simple: the high price of luxury goods isn't a bug in the system, it's the whole point. So instead of competing through discounts, brands must compete through spectacle: celebrity placements, giant flagship stores, fashion shows, editorial buzz, and events like the Met Gala — which Wolfers argues is a less-bad outlets for wasteful, non-price competition. In fact, the real scandal may be that Met Gala tickets are underpriced. If brands capture enormous media value from the event while the museum gets only a relatively small share, then the Met may be giving luxury houses a very good deal. The stakes here go beyond fashion. This is a lesson in how markets work when buyers care about status, not just usefulness—and how that affects where money gets spent, what gets built, and how prestige shapes the economy around you.

You can listen to Are Met Gala Tickets Too Cheap? Diving In online on Radio and Podcast. Open the player on this page to stream the available audio.

Are Met Gala Tickets Too Cheap? Diving In is an episode from Think Like An Economist by Betsey Stevenson & Justin Wolfers.

This episode is 13:51 long.

This episode was published on May 11, 2026.

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