Why is scalping illegal?

[Sava]

Therefore, if the scalper could not anticipate a profit, they would not enter the market.

You must not go to many sporting events. Ticket scalpers are mostly dumbass homeless guys who don't bother thinking about whether they can profit or not. They just go to popular events, buy tickets, and re-sell them because it's not as if someone is going to go to a stadium and suddenly say, oh, I'm not going to pay 30 bucks instead of 15 to go to a Cubs game.... and then go home. It's stupid. Scalpers have the advantage because demand for their "commodity" is inflated. And by legalizing it completely, you'd see these "scalping" companies pop up where some rich 4sshole stands at the front of a ticket line and buys all the tickets to some event that would get sold out no matter what.

[MRT144]

sava, and most people that buy tickets from scalpers are dumb ass yuppies that were looking for a deal at the last minute

[Sava]

You cannot artificially inflate a price in a free market system.

WRONG!

You can if the commodity or service has near-infinite demand. Look at health care. People want to live, so you can artificially raise the price for health care because people aren't going to say, "oh yeah, this life-saving medicine or operation costs too much, I'm not going to get it."

And look at energy. People need heat in the winter. That's why de-regulation is bad. Heat companies could simply raise the prices of energy because demand is really really high.

This is why the free-market system is extortion and why the free-market concept should only be in consumer goods. That's it.

I'm not saying ticket sales are a necessity, don't interpret my post as that. I'm saying that middle-men entities in business are bad because they do artificially inflate prices. They don't bear the burden of expense in whatever industry they meddle in. And this goes against the free-market ideal... which, BTW, is flawed.

[Sava]

Originally posted by MRT144
sava, and most people that buy tickets from scalpers are dumb ass yuppies that were looking for a deal at the last minute

Yeah, and I'd like to keep it that way. By opening the doors to scalping, you open up a flood gate of greedy 4ssholes who would make going to a ball-game for a fair price, a thing of the past.

[PLATO]

oh yeah, this life-saving medicine or operation costs too much, I'm not going to get it."

Sava, Sadly people do say this everyday. In a totally unrestrained free market it is apparent from history that monopolistic tendencies do develop. This is why responsible market oriented governments are needed. For example: The telephone would not have reached its sucess without regulated monopolistic powers. Governments do have a place in free market economies.

This example would NOT apply to ticket scalping.

[Sava]

You arguing as if I'm a proponent of the free-market system.

[PLATO]

Originally posted by Sava

You must not go to many sporting events. Ticket scalpers are mostly dumbass homeless guys who don't bother thinking about whether they can profit or not. They just go to popular events, buy tickets, and re-sell them because it's not as if someone is going to go to a stadium and suddenly say, oh, I'm not going to pay 30 bucks instead of 15 to go to a Cubs game.... and then go home. It's stupid. Scalpers have the advantage because demand for their "commodity" is inflated. And by legalizing it completely, you'd see these "scalping" companies pop up where some rich 4sshole stands at the front of a ticket line and buys all the tickets to some event that would get sold out no matter what.

Sava, this would not be the case if the original seller was selling at an equilibrium price. The "dumbass" segment is accounted for on both the selling and buying side

[PLATO]

Originally posted by Sava
You arguing as if I'm a proponent of the free-market system.

The system works the same weather you are a proponet or not. It was obvious to me that, at least for this argument, you are not.

[Sava]

So if an organization is selling tickets for their event lower than the demand, you think it's all right for some 4sshole to come in and buyout the tickets, negating the goodwill of the original seller?

Scalping organization would simply raise prices in all instances. And raising prices just so some idiot who didn't do anything to create/improve the product/service is wrong and immoral. Go get a job and contribute something to society instead of trying to make a quick buck taking advantage of increased demand.

With all the problems in the world, why do you feel the need to defend ticket scalpers and scumbags extraordinaires?

[MRT144]

scalping organizations exsist, clearchannel communications

[Sava]

yeah, but they have limitations. And even legitimate scalping organizations are comprised mostly of scumbags and dumbasses.

[Boris Godunov]

Originally posted by The Mad Monk


You mean you can't reserve the seats in advance?

Sure, but so can scalpers...

[Urban Ranger]

Originally posted by PLATO1003
If, in fact, the seller was selling at the equilibrium price, then the scalper would be able to claim a higher price for some tickets, but would be left with extra tickets to sell. As some componet of demand is time related, the original equilibrium price would fall as this segment of demand fell off.

Again it is not this simple. First of all, for many events such as concerts, the tickets are stratified. Even if the overall supply meets the demand at some point, this fails to hold true when people are willing to pay $40 but only $80 tickets are left. Scalpers can make a buck by selling $40 tickets at $60. Secondly, time restraint doesn't really apply. In fact, people tend to be willing to pay more as the event draws closer and closer. Buying tickets at the door from scalpers for a sold out event is like putting yourself up for ransom.

Originally posted by PLATO1003
The scalper would recoup this revenue by actually getting a higher price for the segment of demand that is neithier price or time sensitive. Theoretically, the scalper should end up at the same revenue as the theatre would have. This is the basis of equilibrium pricing.

You are assuming that the price is a linear function, which in fact is not the case. If a scalper creates a 50% shortage but can sell tickets at 400%, he will break even if he only sells half of the tickets he has. He can sell the rest at face value and that is pure profit for him.

Originally posted by PLATO1003
In your post you identified the shortage as artificial. That is exactly what it is.

People make money often from artificial shortages, esp. if the population is drivien by irrational mental states such as panic or desire. This is one of the shortfalls of classic economics.

Originally posted by PLATO1003
You cannot artificially inflate a price in a free market system.

However, entertainments events are by definition monopolies. There is only one such event at any given time and place. It is not a free market.