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Message
re: A big F*ck You to Scalpers
Posted on 12/17/15 at 4:10 pm to LucasP
Posted on 12/17/15 at 4:10 pm to LucasP
quote:
This is a better analogy. Except society does benefit from investment in companies. They can use that capital to produce goods and services, so someone actually benefits besides the investor. With scalping, that doesn't happen.
Unless you're the FIRST person to purchase the stock at IPO, the company that issued the stock generally sees no money from a transaction on the secondary market. See if you're able to follow along.
See, the first person (the scalper) buys the share of stock (ticket) at the IPO (box office) directly from the company (the artist/promoter) and puts money into the company's (artist/promoter) pocket. Then the initial investor (scalper) turns around and sells the stock (ticket) to a third party (someone who is willing to pay the spot market price for a ticket to see Adele instead of bitching about scalpers) on the secondary market through the New York Stock Exchange (StubHub) for a profit (profit).
The company (artist/promoter) sees no gain or loss from the secondary transaction between the initial investor (scalper) and the third party (someone who is willing to pay the spot market price for a ticket to see Adele instead of bitching about scalpers).
Hmm. Interesting.
This post was edited on 12/17/15 at 4:14 pm
3
Posted on 12/17/15 at 4:17 pm to TigerstuckinMS
Rebuttal coming, gotta take the kid home. But good point.
Posted on 12/17/15 at 4:20 pm to TigerstuckinMS
So by his analogy, a stock broker does nothing for society and is a bum?
Posted on 12/17/15 at 4:43 pm to Errerrerrwere
quote:
So by his analogy, a stock broker does nothing for society and is a bum?
OK this one first cause it's easier.
Yeah you could definitely make the argument that a stock broker doesn't actually contribute anything and only plays with other people's efforts to benefit himself. It's not a huge leap as few benefit from what he does other than himself.
But the truth is that stock exchanges do stabilize markets and pricing which, in theory, should be of benefit to society.
This post was edited on 12/17/15 at 4:49 pm
Posted on 12/17/15 at 4:46 pm to LucasP
So.:...no?
Posted on 12/17/15 at 4:48 pm to TigerstuckinMS
quote:
Unless you're the FIRST person to purchase the stock at IPO, the company that issued the stock generally sees no money from a transaction on the secondary market. See if you're able to follow along.
You're correct, but that trade does eventually determine the value of future stock and allows for investment in the company which will hopefully produce something that benefits society. That end result of a benefit to society is never facilitated by the scalper where the investor actually acts as a catalyst for it.
Make sense? A day trader is a necessary evil and an opportunist. A scalper is a completely unnecessary evil and a piece of shite opportunist.
Posted on 12/17/15 at 4:48 pm to Errerrerrwere
Yeah no. Almost but not quite.
Posted on 12/17/15 at 4:54 pm to LucasP
Lmfao
Posted on 12/17/15 at 5:16 pm to TigerstuckinMS
quote:
No kidding. frick everybody who ever bought a product that is in demand and resold it for a profit.
Sorry that you're narrow minded and don't get it.
Posted on 12/17/15 at 5:20 pm to Rouge
quote:
how i know you're gay? you rage over not getting Adele tickets
Actually, being physically and emotionally attracted to a member of the same sex as yourself is what makes one gay. It is not the type of music one listens to. Would you call all Judas Priest and Queen fans gay? Because the lead singers of both of those groups were flaming, that must mean their fans are gay.
Posted on 12/17/15 at 5:38 pm to DeathValley85
quote:
Sorry that you're narrow minded and don't get it.
So, if Adele just came out and charged $300 for a ticket from jump, it would be okay?
HINT: The people paying the price the market demands to scalpers when face values are too low would be the same people paying the price the market demands directly to Adele if the tickets were priced properly. To get rid of scalpers, you have to get rid of their economic incentive. This means raising prices to a level commensurate with the demand for the product.
Sorry that you're stupid and don't get it.
This post was edited on 12/17/15 at 5:41 pm
Posted on 12/17/15 at 5:44 pm to TigerstuckinMS
quote:
HINT: The people paying the price the market demands to scalpers when face values are too low would be the same people paying the price the market demands directly to Adele if the tickets were priced properly. To get rid of scalpers, you have to get rid of their economic incentive. This means raising prices to a level commensurate with the demand for the product.
This argument assumes that Adele's only motive is profit. Maybe she wants cheap tickets for other purposes, exposure, fan loyalty, etc.
If Adele wants people to have cheap tickets, she should have that right.
Posted on 12/17/15 at 6:25 pm to TigerstuckinMS
quote:
The people paying the price the market demands to scalpers when face values are too low would be the same people paying the price the market demands directly to Adele if the tickets were priced properly. To get rid of scalpers, you have to get rid of their economic incentive. This means raising prices to a level commensurate with the demand for the product.
It is just basic economics that the price of a item in high demand and limited supply will rise until equilibrium is reached. Until a product is offered to the market it is difficult to determine what the maximum price will be. This is demonstrated in IPOs of stock where the opening and final price for the day are usually drastically different. There have been car models that due to demand sold for more than the MSRP on the sticker, in the California real estate market the listing price is the starting point for higher offers.
Posted on 12/17/15 at 6:35 pm to LucasP
I would assume so.
See Grateful Dead fiasco.
They put tickets up at another venue for their fans.....
And still made a shitload of $$$.
At some point the artist has final say so.
See Grateful Dead fiasco.
They put tickets up at another venue for their fans.....
And still made a shitload of $$$.
At some point the artist has final say so.
Posted on 12/17/15 at 6:39 pm to PBnJ
Do you even efficient market, bro?
Posted on 12/17/15 at 6:40 pm to EA6B
If the scalped tickets are way higher than tickets through normal outlets, the price of the tickets were too low to begin with.
Posted on 12/17/15 at 6:43 pm to LSUvegasbombed
quote:
Avett Brothers
People pay to see that? Opened for Stones in Raleigh. Not good.
Posted on 12/17/15 at 6:49 pm to PBnJ
The good news I got 4 lower bowl off ticketmaster for Sunday here in Nashville. Had laptop, iPad, and app on iPhone all on at 10am. App was last to register and first to get tickets FYI
Posted on 12/17/15 at 7:28 pm to ItNeverRains
quote:
The good news I got 4 lower bowl off ticketmaster for Sunday here in Nashville. Had laptop, iPad, and app on iPhone all on at 10am. App was last to register and first to get tickets FYI
I tried with the app at 10 and it told me that "The app is not selling tickets for this event." And to try the website. Which, of course, was overwhelmed. I tried the app ten minutes later, got in, and after a few fits and starts was able to get two singles on opposite sides of each other for $300(total).
I'm glad I'm going, but completely pissed that the app lied to me and made me lose ten minutes.
I tried for the pre-sale yesterday, but did not get through.
I would imagine that there were at least 10 million people trying for about 1 million tickets.
Posted on 12/17/15 at 7:32 pm to LucasP
quote:
If Adele wants people to have cheap tickets, she should have that right.
No argument from me there. She's free to charge whatever she wishes. That doesn't mean that the price is correct. If you have a ton of gold, you're free to sell it at half market price, but that would be stupid and there would soon be some very happy and rich people because of it. They'd pocket the money your inefficiency left on the table and the gold would then be trading at the price the market demands. Tickets are no different.
Where it goes off the rails is when people complain because the original price is wrong (Bob Barker does not approve) and the secondary market jumps in to make money off of the inefficiency. People complain that the meanies drive the price up when, one way or another, the price would rise because of the mismatch in supply and demand. In this case, there is NOTHING that would prevent the price from rising short of artificially putting in a price ceiling (id checks, CC checks, etc.) to prevent the secondary market from fixing the initial pricing frick up.
This post was edited on 12/17/15 at 7:41 pm
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