Is Ticket Scalping morally wrong?
Or they sell their tickets when they can no longer attend the events. Of course, concert organisers and promoters seldom take action against these harmless practices. It is only when they sniff profiteering that they might clamp down on the perpetrators.
What’s wrong with scalpers?
Scalping is buying a product, typically in bulk, and reselling it for prices higher than the initial retail price. If enough individuals do this, it creates scarcity and any consumer interested in the product could now be paying much more than necessary while the scalper makes a profit.
Is there anything wrong with scalping?
Are scalpers good or bad?
If enough individuals do this, it creates scarcity and any consumer interested in the product could now be paying much more than necessary while the scalper makes a profit. This practice is awful for consumers and unfortunately not enough has been done to stop it.
Who benefits from ticket scalping?
Scalping can also benefit ticket producers – the sports teams or performing artists who supply tickets – in two ways. First, it enables them to earn ticket revenue through face-value prices long before an event, while scalpers bear the risk that demand and prices might fall below the price they paid.
What is ticket scalping and how does it work?
Ticket scalping is the resale of tickets in the secondary market. It exists at many sports and other entertainment events because under-pricing at the box office creates excess demand, thereby not allowing the market to clear.
Why don’t box office ticket scalpers sell on-site tickets?
On-site ticket scalpers generally do not sell to regular customers, so they have no reputation to gain or lose by selling at certain prices. Additionally, Allan C. DeSerpa (1994) points out that the box office has to take additional revenues, such as concessions, into consideration when pricing the tickets.
Is scalping Star Wars tickets illegal?
For instance, a block of eight tickets for the opening of Star Wars: Episode I was resold for $600, far above the face value (Weber, 1999). While some may claim that ticket scalping is unethical and immoral, even illegal in certain states and municipalities, it is simply a free-market transaction.
Do scalpers reduce consumer surplus without reducing revenue?
Spindler disagrees with Swofford’s claim that scalpers reduce consumer surplus without affecting the producing firm’s revenue: “The possibility of selling unwanted tickets would surely affect the initial demand for tickets per se when such a repurchase/resale feature is not officially provided” (Spindler, 2003, p. 695).