Some people on Facebook have wanted to heap coals of fire on so-called "ticket scalpers" for a benefit concert. Apparently the tickets for the concert sold out in 30 seconds. Obviously, the demand for tickets greatly exceeded the supply--AT THAT PRICE.
Let's say that the concert promoters had 10,000 seats. Let's say that all the seats were priced at $10 each. The maximum revenue that the concert promoters could generate is $100,000. Whether the tickets were bought by so-called "scalpers" or by the people who are upset that they didn't get any would make no monetary difference to the promoters. All the tickets sold so they generated their maximum revenue.
Since the tickets sold out in 30 seconds the promoters grossly under-priced the tickets. The promoters set the price and chose the method of distribution. If you don't like the outcome, blame them.
The so-called "scalpers" incur a risk. Suppose no one wants to buy the tickets they bought at higher than face value. They will then lose their money. People buy at one price and resell at a higher price every day. Are you going to stop shopping at Wal-Mart and Target because they do this? The amount of the mark-up is not relevant. So long as the demand exceeds the supply and the free market is allowed to work, the price will rise until the market reaches its equilibrium price.
That's Economics 101.
Thomas E. Snyder
Adjunct Instructor in Economics
Northeast Lakeview College