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Debate: Ticket scalping

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Is ticket scalping legitimate, or should it be banned?

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Inflated prices: Can ticket scalping avoid inflating prices?

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Pro

  • Scalpers help sell tickets to those that want them most. Scalpers reflect the broader nature of the markets, helping sell tickets at a price that ensures that only those that want tickets the most are going to get them. This is an important principle in the marketplace that is upheld very well by scalpers. Those that want tickets the most are generally more willing to pay more (to scalpers or others). Because these individuals are more excited about the event (product), they enjoy the event more than those that aren't willing to pay as much. Because the stadium or venue is filled with people that really value the performer, a greater level of enjoyment overall is achieved. And, as a reward, the performer can receive a greater reward for their product, which may encourage them to produce more of the product at a higher rate and for more years, thus increasing the utility for all individuals involved in the equation. For this reason, scalpers do a major service to performance industry; by unveiling the ability of the marketplace to maximize value, utility, and enjoyment.
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Con

  • Scalpers keep supply low, prices high, by tearing up tickets For the scalpers' business to work, they will often need to limit the supply of tickets—and tear up the extras instead of selling them at face value: "If more of the tickets are purchased by ticket scalping enterprises, there are fewer and fewer seats left for those who try to purchase their tickets legitimately. This creates a demand for ticket scalping, which leads to inflation of ticket prices and a subversion of the original ticket system."[1]


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