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by jessriedel 5094 days ago
In the short term, there are a fixed number of hard drives (and beach balls, and microwave ovens, ...). Why don't we have to worry about hard drive scalpers artificially constraining the supply?
3 comments

Interesting question. It made think of another situation.

How often would CK have to perform to make scalping essentially a non-issue?

More than once a year I would guess. But once a month? Every week?

What factors determine this?

It would be determined mostly by price, and this would just be another version of the supply/demand curve. If he sells the tickets at $20 each, then 100k will want to see his show. At $50 each, 10k people, and so on.
There is a much smaller quantity of seats that need to be acquired to scalp the market and push out competition. The spread is much higher if you know there is a relatively high demand that cannot be justifiably spent elsewhere.
Shows are much more constrained. It's the very specific "skilled labor" involved (only one person can produce a show in only one city, maybe two a night). Imagine if you needed a hard drive factory in each city and only one factory could run at a time.

I can't buy a show for Denver. I might not even be able to buy a show for Friday nights. That severely limits the pool of "supply" I can buy from. Louis might be in my city once a year for a few days if I'm lucky.