6 ms·
Scalping increases MSRP. Removing it would cause it to decrease.
by nojito 5y ago
Scalping increases MSRP. Removing it would cause it to decrease.
- xboxnolifes 5y agoThe only reason scaplers exist is because people are willing to pay a higher price than what the scalper pays for the good. The fact that people are willing to pay the higher price shows it was priced too low.
- wpietri 5y agoIt does not show that at all. Taking Nintendo as mentioned above, they have plenty of reason to aim for a stable, low price. The economics of their business are different than somebody, say, selling their labor by the hour. If they maximize per-console profit, they end up screwing themselves by creating a platform without many users, which is then unattractive to both game-makers and game-purchasers.
- tyingq 5y agoSometimes based on artificial scarcity created by a scalper. People are sometimes paying for a status symbol and wouldn't have purchased the item otherwise. Meaning their interest was only piqued after the item was hoarded.
- ribosometronome 5y agoGenerally, price gouging is frowned upon by society and detrimental to a healthy market.
- xboxnolifes 5y agoThe scalping only exists because the market was "unhealthy" (not efficient). What is detrimental to society and markets which are based around maximizing utility of dollar spent is the massive wealth inequality that makes it so things need to be priced so low as to actually allow a majority of the population to afford their choice of scarce resources.
- vlovich123 5y agoAll it shows is that price discrimination is needed, not that the price is too low. Indeed, raising the price may net reduce revenues if they’ve already priced the MSRP optimally on the price demand curve. The only solution here would be to have an MSRP that’s dependent on your net worth but that’s seen as undesirable so instead we get 2 price points: scalpers and normal channels. So rather than the manufacturer or consumer seeing the benefit of price discrimination, the scalper, who’s essentially rent seeking, gets to arbitrage that opportunity. Either ban resale for more than retail or let manufacturers alter their prices based on your price sensitivity.
- notahacker 5y agoThis assumes the only purpose of selling is to maximise short term yield on that particular item. One of the reasons ticket scalpers associated with events are particularly despised is that the promoters of the event would much rather the event was affordable and full than expensive but half empty, which might be the capacity which yields the most ticket revenue.
- deleted 5y ago[deleted]
- nojito 5y agoScalping prevents actual price discovery from happening. So how can you say that "people are willing to pay a higher price"