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> That will just raise the market price, scalpers will keep scalping and overall sales will decline. This is not true. Market price will not go up arbitrarily.
by bryan0 4y ago
> That will just raise the market price, scalpers will keep scalping and overall sales will decline.
This is not true. Market price will not go up arbitrarily. Scalpers will not keep scalping if the retail price is greater than what they can sell it for, which will happen at some point.
- 8note 4y agoI'm not sure how you're avoiding the "sales decline" part.
- bryan0 4y agoWhy do you think sales will decline? The difference is who makes the profit. If Nike increases prices then profit shifts from the scalpers to Nike. The same number of shoes are sold for the same market prices.
- still_grokking 4y agoWhy should they? Someone buys this stuff for the prices of the scalpers. So someone will buy this stuff. Maybe it just takes longer. But I guess not even that.
- ctvo 4y ago> This is not true. Market price will not go up arbitrarily. Scalpers will not keep scalping if the retail price is greater than what they can sell it for, which will happen at some point. How are you using such confident language on what the scalpers in this space will or will not do base on ... what looks like Econ 101 supply / demand curves? Do you have some expertise you're not including as context here?
- bryan0 4y agoYeah this a fair point, I’m coming off way too confident on a complicated topic. I’d revise my comment to say: I think this is not true, which can be seen if you make 2 basic assumptions: 1. Scalpers want to make money and 2. There is a max price people are willing to pay for shoes. Then there will be some price Nike can set which will cause scalpers to leave the market.