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> Scalpers perform a social service by rationing demand and ensuring availability. While the fundamental issue is indeed price discovery, even in the most abst

by raducu 5y ago

> Scalpers perform a social service by rationing demand and ensuring availability. While the fundamental issue is indeed price discovery, even in the most abstract market -- stocks/fx/derivatives there are numerous regulations in place to limit the predatory behavior of certain speculators. It is astonishing we have no such regulation for real-life items. Scalpers are compounding a problem, by reselling something at 5X the price they invite others to do the same, they create artificial demand and speculation. > Think about hospitals paying 10 times more No, think somali pirates in terms of transportation costs. If you only look at it throught the autistic-economical lens, they are entrepreneurs helping the market find the right price for transportation. > the problem is low competition not intermediaries The problem is inelastic markets and high moats. Think New York real estate market where mobsters around the world inflate property price and will destroy the local economy. Think about drug cartels and drug prices. Think about the USD and its status as a global currency and its relationship to the Military Industrial Complex.

christophilus 5y ago
> It is astonishing we have no such regulation for real-life items. We have something close for emergency situations. It’s illegal to price gouge during something like the aftermath of a hurricane. It’s a well intentioned law. But for some things, it really may be best to let market forces dictate. For example, generators are in high demand and short supply during a hurricane. Folks snap them up so they can play Nintendo. Because they’re inexpensive due to gouging laws, they sell out fast. Now, someone who actually needs that generator for important, possibly life-saving work is SOL. And there isn’t a price incentive to expedite bringing in more supply. Edit: I still think the scalpers are scumbags. Just wanted to point out an argument I found compelling in the past.
- WanderPanda 5y ago
  You don’t need to apologise! It is sad that people don’t get this simple mechanism. I believe that lots of misery could have been averted if market signals where not distorted when they are needed most. E.g. in your example higher prices for generatora would not only prevent people from buying them for less important things but also open up a location arbitrage opportunity and incentivise to bring generators to the place where they are needed most.
deleted 5y ago
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by raducu 5y ago

christophilus 5y ago

> It is astonishing we have no such regulation for real-life items. We have something close for emergency situations. It’s illegal to price gouge during something like the aftermath of a hurricane. It’s a well intentioned law. But for some things, it really may be best to let market forces dictate. For example, generators are in high demand and short supply during a hurricane. Folks snap them up so they can play Nintendo. Because they’re inexpensive due to gouging laws, they sell out fast. Now, someone who actually needs that generator for important, possibly life-saving work is SOL. And there isn’t a price incentive to expedite bringing in more supply. Edit: I still think the scalpers are scumbags. Just wanted to point out an argument I found compelling in the past.

WanderPanda 5y ago
You don’t need to apologise! It is sad that people don’t get this simple mechanism. I believe that lots of misery could have been averted if market signals where not distorted when they are needed most. E.g. in your example higher prices for generatora would not only prevent people from buying them for less important things but also open up a location arbitrage opportunity and incentivise to bring generators to the place where they are needed most.

deleted 5y ago

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