Submitted via IRC for SoyCow1984
When Adele fans went online to buy tickets to the pop superstar's world tour last year, they had no idea what exactly they were up against.
An army of tech-savvy resellers that included a little-known Canadian superscalper named Julien Lavallée managed to vacuum up thousands of tickets in a matter of minutes in one of the quickest tour sellouts in history.
The many fans who were shut out would have to pay scalpers like Lavallée a steep premium if they still wanted to see their favourite singer.
An investigation by CBC/Radio-Canada and the Toronto Star, based in part on documents found in the Paradise Papers, rips the lid off Lavallée's multimillion-dollar operation based out of Quebec and reveals how ticket website StubHub not only enables but rewards industrial-scale scalpers who gouge fans around the world.
CBC News obtained sales records from three U.K. shows that provide unprecedented insight into the speed and scale of Lavallée's ticket scam.
Despite a four-ticket-per-customer limit, his business snatched up 310 seats in 25 minutes, charged to 15 different names in 12 different locations.
The grand total? Nearly $52,000 worth of tickets at face value.
Source: http://www.cbc.ca/news/business/paradise-papers-stubhub-1.4395361
(Score: 3, Insightful) by sjames on Wednesday November 15 2017, @08:21AM (8 children)
There's no such thing as an artificial surplus. There are N seats available and N tickets to go with those seats. No more, no less.
The part you're missing is that the scalpers CAUSE the seller to run out of tickets much sooner with the express purpose of causing prices to rise. They are an economic inefficiency. They are rent seekers because they get in between seller and the ultimate buyer and suck value out of the transaction without producing any value.
Do read up on rent seeking and why it is always (and I mean ALWAYS) bad for the market.
(Score: 1) by khallow on Wednesday November 15 2017, @02:27PM (2 children)
This is a counterexample. Scalpers bought underpriced tickets, thus in artificial surplus, well before the event, and sell them at market price later.
They exploited the actual economic inefficiency.
You still don't get why it's happening - bad market design. The key factor is dumping a bunch of tickets well before the concert. Plans aren't always made that early. Plans change. In a sensible market, one could pay more to get tickets even to the last minute.
(Score: 2) by sjames on Wednesday November 15 2017, @03:40PM (1 child)
Unless the band is taking a loss on the concert, the tickets are not underpriced. If there was a surplus, it was a natural one (more seats available than people who want to see the concert). In a perfect market, the tickets will cost not a single iota more than necessary to motivate the band to do the concert and pay the costs of it. That price will never be more than the price they freely offered the tickets at.
Inefficiencies in a market drive prices up. They're never a good thing, but they can't always be avoided.
(Score: 1) by khallow on Wednesday November 15 2017, @03:47PM
And when they freely offer those tickets.
(Score: 1) by khallow on Wednesday November 15 2017, @08:54PM (4 children)
(Score: 2) by sjames on Wednesday November 15 2017, @09:00PM (3 children)
That's just a surplus,. Nothing artificial about it (in the economic sense).
(Score: 1) by khallow on Wednesday November 15 2017, @09:09PM (2 children)
It's artificial in the same way that it is artificially scarce.
(Score: 2) by sjames on Wednesday November 15 2017, @10:18PM (1 child)
You really don't seem to grasp the concept of artificial scarcity vs. natural scarcity at all.
(Score: 1) by khallow on Thursday November 16 2017, @05:02AM