King Rat (gkr) wrote,
King Rat

Eco 200: scalping

(group) You find out in late December that you can make $10,000 on a business deal if you can gain the goodwill of a client by getting him two tickets to the Super Bowl game next month. You manage to buy two well-located seats from a scalper for $750. Were you cheated by the scalper? Or are you glad the scalpers exist? Why do so many people intensely dislike scalpers?

People intensely dislike scalpers because they often make a large profit for very little capital investment. In the case described above, I would not be cheated as I received much more in value than I paid for the tickets. Whether I am glad for the scalpers existence depends on how much I could have obtained the tickets for in their absence. Individual holders of the tickets might not have been so inclined to base their prices on opportunity cost.

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