Price caps: Rio hotels edition - the Olympics vs World Cup

Who knew that the laws of supply and demand don't get repealed - even for the Olympics. Compare and contrast hotel prices at World Cup to the Olympics in Rio (Time):

That’s because FIFA’s official accommodations agency isn’t capping the maximum room rate, unlike Olympic officials.

Industry studies show that hotel rates in Rio offered by FIFA agency MATCH Services will cost on average $150 more than those offered by hotels contracted directly through the local Olympic organizing committee for the 2016 Games.

While the price caps during the Olympics help keep costs down, analysts also say it has to do with simple supply and demand. Less people are expected in Rio during the Olympics and there will be more hotel rooms available because of ongoing construction.

Rio will benefit far more economically from the World Cup - for good reason.