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The existence of such scalpers rather shows that the price set by the producer is too low for the given rate of production (i.e. there is more demand than suppl

by q-big 4y ago

The existence of such scalpers rather shows that the price set by the producer is too low for the given rate of production (i.e. there is more demand than supply for the given price). In an ideal market, the producer would increase the price and get more profit. But since this action is not taken by the Raspberry Pi foundation, other market participants (scalpers) appear that attempt to profit from this price difference between then price set by the producer and the price that can be achieved on the market. Thus, the existence of scalpers is rather a symptom that shows that the producer could set the price higher (and thus balance supply vs demand).

salawat 4y ago
Your ideal market, of course, proving why we cannot have nice things. As the moment somebody puts in the work to engineer a package so hella cheap that anyone can afford it, and start to actually do so, ideal market theorists pour in undoing the entire thing, lest money be left on the table. Demand that outstrips supply does not necessitate a price increase must happen. Sometimes, the entire point of such an arrangement, is to render something accessible to individuals otherwise priced out. Let us not trouble ourselves trying to justify economic's desperate attempt to legitimize greed as a virtue.
- q-big 4y ago
  > As the moment somebody puts in the work to engineer a package so hella cheap that anyone can afford it, and start to actually do so, ideal market theorists pour in undoing the entire thing, lest money be left on the table. The problem is that if you sell things insanely cheaply, the demand increases a lot, i.e. not everybody who would like to get one, is able to - this is called scarcity. There exist two approaches to this problem (mixed solutions between these two approaches are also possible): 1. increase the production rate such that there is sufficient supply for the given demand - this is the solution that you, I think, wish. 2. increase the price of the product and be happy that producing cheaply and selling more expensively makes you a lot of money In other words: the lesson that you miss in your post is that it does not suffice to engineer a package so cheap that anyone can afford it, but you also have to ensure that you have sufficient production capacity that you can fill the demand which comes from this cheap price.
  - salawat 4y ago
- rdtwo 4y ago
  It seems counterintuitive but the way you bring prices down is actually to bring them up enough to make scalping not profitable. Scalpers have lots of costs associated with transaction. Tools, bots, ips, platform fees taxes, fraud etc. You by raising prices to 10-15% under the secondary market you basically price out the secondary and bring costs down for everyone

by q-big 4y ago

salawat 4y ago

Your ideal market, of course, proving why we cannot have nice things. As the moment somebody puts in the work to engineer a package so hella cheap that anyone can afford it, and start to actually do so, ideal market theorists pour in undoing the entire thing, lest money be left on the table. Demand that outstrips supply does not necessitate a price increase must happen. Sometimes, the entire point of such an arrangement, is to render something accessible to individuals otherwise priced out. Let us not trouble ourselves trying to justify economic's desperate attempt to legitimize greed as a virtue.

q-big 4y ago
> As the moment somebody puts in the work to engineer a package so hella cheap that anyone can afford it, and start to actually do so, ideal market theorists pour in undoing the entire thing, lest money be left on the table. The problem is that if you sell things insanely cheaply, the demand increases a lot, i.e. not everybody who would like to get one, is able to - this is called scarcity. There exist two approaches to this problem (mixed solutions between these two approaches are also possible): 1. increase the production rate such that there is sufficient supply for the given demand - this is the solution that you, I think, wish. 2. increase the price of the product and be happy that producing cheaply and selling more expensively makes you a lot of money In other words: the lesson that you miss in your post is that it does not suffice to engineer a package so cheap that anyone can afford it, but you also have to ensure that you have sufficient production capacity that you can fill the demand which comes from this cheap price.
- salawat 4y ago
rdtwo 4y ago
It seems counterintuitive but the way you bring prices down is actually to bring them up enough to make scalping not profitable. Scalpers have lots of costs associated with transaction. Tools, bots, ips, platform fees taxes, fraud etc. You by raising prices to 10-15% under the secondary market you basically price out the secondary and bring costs down for everyone