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I do think logically, if supply is ample (greater than demand) than the return on scalper investment may drop below the point of being worthwhile. Transaction c

I do think logically, if supply is ample (greater than demand) than the return on scalper investment may drop below the point of being worthwhile. Transaction costs and the risk of no longer being the preferred direct retailer could result in scalping losing you money. As long as demand readily exceeds supply, having the in-demand item gives you the power to collect a greater price on that item. If it's evenly matched, scalping would likely be a minor, potential problem, but not to the scale we're seeing on all of these gaming items.

pashamur 6y ago
Scalping disappears if supply matched demand (with perfect geographic efficiency). Buying from a scalper is strictly riskier than buying from a retailer (might not be able to return faulty equipment, etc). There might be exceptions for rare / limited edition items because then scalpers can potentially control the whole market and extract monopolistic profits (assuming the demand curve allows it). Scalpers only exist when the true market price of something doesn't match the list price (Demand >> Supply). Graphics cards worldwide, microphones, at-home lifting equipment, USD in Venezuela... it's basically Uber's surge pricing but for products :)