I don't need to prove my knowledge to you by pointing out lots of capitalism's flaws. Instead of reading my comment carefully, you decided to teach me about how basic supply and demand operate. Jesus, you are a self-absorbed piece of work.
I don't need to prove my knowledge to you by pointing out lots of capitalism's flaws. Instead of reading my comment carefully, you decided to teach me about how basic supply and demand operate. Jesus, you are a self-absorbed piece of work.
Anyways, why do you think that, given all that, scalping is a bad thing then? Isn't getting the goods to where they're valued most a good thing? Who's getting heartbroken here? The people who can't afford one at the market price of $600? But most of them weren't going to get one anyways because of the limited supply. If there's something to not like it's the scarcity, right?
NO SCALPING
Original seller gets: 1x price
Customer pays: 1x price
5x SCALPING
Original seller gets: 1x price
Reseller gets: 4x price
Customer pays: 5x price
This is simple leeching. Customers pay 5x the price they could have, the seller gets still just the original amount of money. I think the situation is strictly worse than without scalping.There are other arguments for and against to be made, but I think this one is enough to see why many people - myself included - find this practice distasteful and antisocial.
Scalpers also make it easier to buy the product; without scalping one can not be sure whether one will get the product or not.
The customer is also not forced to pay anything. There is typically a short timeframe where the items are out of stock.
I personally find tons of value in scalping. I've done it myself with tickets, and bought tickets in the same manner. It lets me trade time (waiting at a website or in line) for money.
Once we accept that the welfare of resellers matters just as much as customers, it's clear that the situation is not strictly worse with scalping.
As you helpfully tallied up there, the gains and losses of everyone involved is the same in terms of money changing hand in either case, but in the latter case of scalping, the world is richer, because in addition to the money you paid or lost, people in the world who have an NES celebrate it to the degree they like the NES. And that has to be higher for the people who won it via auction rather than blind luck.
I can see an objection coming, and that's that in the real world it's not blind luck, since often the people in a no scalping world camp out for days to try and be the winners of the lottery. But this is not a good outcome, because while this does mean that the people who value the NES most will tend to get it, it also leads to ruinous competition in terms of who is willing to spend the most time in line. The hours wasted to the line have to then be counted as a negative in the tally and that makes that option arguably worse than the blind lotto and certainly worse than the auction.
Personally I like scalping because I can almost always buy what I want as opposed to no option. It has always worked out well for tickets and items.