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In this case the venue has an advantage that contributes to economic inefficiency. The same total sum of goods and services is available with scalpers buying u
by ubernostrum 17y ago
In this case the venue has an advantage that contributes to economic inefficiency.
The same total sum of goods and services is available with scalpers buying up the supply, but those goods and services are now provided at higher total cost than otherwise. This is, so far as I'm aware, the definition of inefficiency and consists solely of artificial inflation of prices.
- cturner 17y agoOK, thanks. I see that now. In the scenario discussed above in the thread this is the case. This provides an example of where scalpers have a negative effect on the market, something I indicated I couldn't see earlier. Although this isn't the universal case, because scalpers can compete against the hosue at a later point in the market, and offset attempts by the house to segment the market, and can lose out at times causing sale at a loss to themselves.