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> Why is it bad to let the free market determine the price for an item with limited supply? How exactly is scalping "free market"? It is a textbook definition

by m000 4y ago

> Why is it bad to let the free market determine the price for an item with limited supply? How exactly is scalping "free market"? It is a textbook definition of artificial scarcity. Also, "market liquidity" is just fine, without the help of the scalpers. If you want that bad to go to a concert, just post how much you're willing to pay for a ticket on a couple of FB groups. If you're willing to give 2x - 4x the face value, I'm pretty sure someone will be willing to part with their ticket.

josephcsible 4y ago
> How exactly is scalping "free market"? It is a textbook definition of artificial scarcity. No, artificial scarcity is for things that there could be an unlimited amount of, but that the seller artificially restricts the supply of. The limit on the number of seats at a concert is real, and scalpers don't change it. > If you want that bad to go to a concert, just post how much you're willing to pay for a ticket on a couple of FB groups. If you're willing to give 2x - 4x the face value, I'm pretty sure someone will be willing to part with their ticket. What's the difference between the person who would sell me a ticket in your example and the scalpers we have today?
- bheadmaster 4y ago
  > artificial scarcity is for things that there could be an unlimited amount of, but that the seller artificially restricts the supply of Since the "unlimited amount of" anything doesn't exist in the real world, replace the "unlimited" with "sufficient", and the concept of artificial scarcity can be applied to scalping again. If scalpers sell tickets at 4x the face value, they don't need to sell them all to make a profit - they only need to sell more than 25%. All the others can go to waste, and scalpers are still profiting. That's, again, textbook artificial scarcity.
- m000 4y ago
  > No, artificial scarcity is for things that there could be an unlimited amount of. There's no such thing as "unlimited amount" of anything that involves the physical world. > What's the difference between the person who would sell me a ticket in your example and the scalpers we have today? Everyone involved would be better-off. Except for the scalpers. Simple as that.
  - josephcsible 4y ago
    > There's no such thing as "unlimited amount" of anything that involves the physical world. I can believe that. Offhand, I can't think of any examples of artificial scarcity that don't involve digital goods. > Everyone involved would be better-off. Except for the scalpers. Simple as that. I'm saying that the seller in your example is a scalper.
    - m000 4y ago
      > I'm saying that the seller in your example is a scalper. They're not. Intent and quantity are the defining traits of scalpers. If you're buying a single ticket with original intent to use it, you are not a scalper.
ravenstine 4y ago
Artificial scarcity is like when you're DeBeers and you make sure that enough diamonds are locked up or not mined that your diamonds can be considered "rare" even though they otherwise wouldn't. Buying up a bunch of diamonds from DeBeers and reselling them isn't artificial scarcity. It's just scarcity that people don't like.
- m000 4y ago
  Yes, but they're not buying "a bunch of tickets". They buy (almost) ALL of the tickets in a matter of minutes. If you could afford to buy ALL of the DeBeers stock, it would have a similar effect on the diamonds market: You could charge the poor sods that are desperate to get engaged ASAP 4x the price DeBeers charged.
qeternity 4y ago
> It is a textbook definition of artificial scarcity. It isn't, at all. There are a limited number of seats in a physical venue, and this is what gives tickets their value. There is nothing artificial about their scarcity.

by m000 4y ago

josephcsible 4y ago

> How exactly is scalping "free market"? It is a textbook definition of artificial scarcity. No, artificial scarcity is for things that there could be an unlimited amount of, but that the seller artificially restricts the supply of. The limit on the number of seats at a concert is real, and scalpers don't change it. > If you want that bad to go to a concert, just post how much you're willing to pay for a ticket on a couple of FB groups. If you're willing to give 2x - 4x the face value, I'm pretty sure someone will be willing to part with their ticket. What's the difference between the person who would sell me a ticket in your example and the scalpers we have today?

bheadmaster 4y ago
> artificial scarcity is for things that there could be an unlimited amount of, but that the seller artificially restricts the supply of Since the "unlimited amount of" anything doesn't exist in the real world, replace the "unlimited" with "sufficient", and the concept of artificial scarcity can be applied to scalping again. If scalpers sell tickets at 4x the face value, they don't need to sell them all to make a profit - they only need to sell more than 25%. All the others can go to waste, and scalpers are still profiting. That's, again, textbook artificial scarcity.
m000 4y ago
> No, artificial scarcity is for things that there could be an unlimited amount of. There's no such thing as "unlimited amount" of anything that involves the physical world. > What's the difference between the person who would sell me a ticket in your example and the scalpers we have today? Everyone involved would be better-off. Except for the scalpers. Simple as that.
- josephcsible 4y ago
  > There's no such thing as "unlimited amount" of anything that involves the physical world. I can believe that. Offhand, I can't think of any examples of artificial scarcity that don't involve digital goods. > Everyone involved would be better-off. Except for the scalpers. Simple as that. I'm saying that the seller in your example is a scalper.
  - m000 4y ago
    > I'm saying that the seller in your example is a scalper. They're not. Intent and quantity are the defining traits of scalpers. If you're buying a single ticket with original intent to use it, you are not a scalper.

ravenstine 4y ago

Artificial scarcity is like when you're DeBeers and you make sure that enough diamonds are locked up or not mined that your diamonds can be considered "rare" even though they otherwise wouldn't. Buying up a bunch of diamonds from DeBeers and reselling them isn't artificial scarcity. It's just scarcity that people don't like.

m000 4y ago
Yes, but they're not buying "a bunch of tickets". They buy (almost) ALL of the tickets in a matter of minutes. If you could afford to buy ALL of the DeBeers stock, it would have a similar effect on the diamonds market: You could charge the poor sods that are desperate to get engaged ASAP 4x the price DeBeers charged.

qeternity 4y ago

> It is a textbook definition of artificial scarcity. It isn't, at all. There are a limited number of seats in a physical venue, and this is what gives tickets their value. There is nothing artificial about their scarcity.