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Your analysis is slightly off. In a world without scalpers, the original ticket purchaser would not exist, because he bought the ticket for the purpose of selli

Your analysis is slightly off. In a world without scalpers, the original ticket purchaser would not exist, because he bought the ticket for the purpose of selling it. However, your general thought is good. In a world without scalpers, person A and B both have a 50% of buying the ticket at price $X. However, the ticket is worth more to B than it is to A (in terms of real utility, not monetary value). There is real value created by increasing the chances of B getting the ticket. The most effective mechanism we have found to maximize the chances that B gets the ticket in this situation is market pricing, which is what scalpers enable.

rahimnathwani 12y ago
I see your point. However, many times people buy tickets to a show because they intend to go, but then something comes up, or their financial situation changes, or demand outstrips supply to the extent that the open market price exceeds the value to them. That's the situation I was imagining when I wrote my post. My original post has as many comments as downvotes, which I take to mean it wasn't a useless post, but that people disagree that scalpers add value. The funny thing is, I would prefer a world without scalpers, and in which I had an equal chance to buy underpriced tickets. If I were rich, I would probably prefer the current situation, or one in which tickets were priced dynamically, like plane tickets are now.
wpietri 12y ago
What's your evidence that a market mechanism is most useful here? When I think of the best concerts I've seen, the ones I really loved, they were mostly when I was young and broke. Now that I'm older and have money I can afford to go more concerts, but I generally care less. I could well be pushing out very passionate fans. I suspect a better mechanism in this case is making people pay in a currency in which we are all more or less equal: time. If the venue just started selling tickets in one spot at a particular time, the people in line first would be the very passionate fans, the ones who dropped everything to get in line early.

rahimnathwani 12y ago

I see your point. However, many times people buy tickets to a show because they intend to go, but then something comes up, or their financial situation changes, or demand outstrips supply to the extent that the open market price exceeds the value to them. That's the situation I was imagining when I wrote my post. My original post has as many comments as downvotes, which I take to mean it wasn't a useless post, but that people disagree that scalpers add value. The funny thing is, I would prefer a world without scalpers, and in which I had an equal chance to buy underpriced tickets. If I were rich, I would probably prefer the current situation, or one in which tickets were priced dynamically, like plane tickets are now.

wpietri 12y ago

What's your evidence that a market mechanism is most useful here? When I think of the best concerts I've seen, the ones I really loved, they were mostly when I was young and broke. Now that I'm older and have money I can afford to go more concerts, but I generally care less. I could well be pushing out very passionate fans. I suspect a better mechanism in this case is making people pay in a currency in which we are all more or less equal: time. If the venue just started selling tickets in one spot at a particular time, the people in line first would be the very passionate fans, the ones who dropped everything to get in line early.