The Duc Pond

If you don’t believe in capitalism, fine. That’s a legitimate position and I have no problem with it. But if you, like most people I know, enjoy free market economies, why make meaningless exceptions because you have some emotional connection with an industry?

Resales of Sony’s Playstation 3 are the focus of my wrath here. The idea that it’s unethical to resell a Playstation 3 (or any product) on eBay for massive profit is so ridiculous, it shouldn’t need explanation. But idiots who don’t understand basic supply and demand get their panties in a bunch when something they want to buy rockets up in price. Guess what? I can’t afford a 5000 square foot house and I’m not complaining. Should people who own homes be made to feel like jerks because they sold their houses at a profit?

Sellers don’t set prices. Buyers do. When you buy something, you’re saying “This number accurately reflects this product’s value to me.”  Nobody’s holding a gun to your head. You vote with your dollars. Now for “essentials” like food, energy, pharmaceuticals, etc. there’s a case for regulation, but $600 video game consoles? I don’t think so.

One problem I can see would be if anti-competitive behavior existed in the PS3 market, namely access to Playstation 3’s that the general public does not have access to.  Some of this exists, but Gamestop/EB have a limit of 2 PS3’s per store going to employees. Even so, the advantage is slight and I believe it has no bearing on prices on the open market.

Another problem is a lack of information or education. You might be willing to buy Google stock at $400 a share, but that willingness might be based more on intuition than examining the fundamentals of the company. Arguably, that’s the consumer’s fault, but I’m all for trying to educate consumers as much as possible.

Similar hatred surrounds ticket scalpers, but again, I see no problem with it. If some fool is willing to pay $1000 to see Madonna, go for it. It’s not a necessity, and you’re not entitled to low concert ticket prices. I don’t know why concert organizers don’t charge more than they currently do for popular shows, other than concern for their public image and an unwillingness to take on risk.

Just remember: buyers set prices.