5 Answers
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Ticket scalpers DO produce something of value. They provide a product or service by delivering the tickets to the final consumers at the right place and right time. If they did not, nobody would be willing to pay the higher prices.
This statement would have to be undeniably false. I can’t imagine any economist insisting that it is true.
Ticket scalping, in many cases, is illegal. To the extent that it is illegal, it is part of the underground economy and causes the official national income accounting numbers (such as GDP) to be understated.
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It is not as if they are not producing anything of value, the scalpers are taking ticket that they bought at say $65 and selling it to people who value it higher but either weren’t up on the times or were unable to buy tickets before. For a concert it could be like someone buying tickets at the $65 mark, 10th row center. They then sold them to someone who was a huge fan who valued the tickets at $250 and paid that much for them while the seller was content to sit on the lawn. The scalper had delivered society’s scarce resources and moved them to where they were most valued through the profit motive and has produced a service to the person buying the ticket.
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What do you mean “without producing anything of value”? who are these “economists”? I get to attend the event at the last minute without having to buy months in advance or stand in line to buy a ticket. That’s value to me.
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Ticket scalping exists due to the fact that there is arbitrage (a way to make a profit that wasn’t accounted for before).
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statement is FALSE.
Scalpers provide a valuable service of having tickets available at any time.
