71–80 of 90 posts
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Learn c++, real-time programming, finance math, move to chicago.
How much finance math do you need ahead of time? Is it enough being a great developer who is willing and able to learn the financial side quickly?
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Scalpers often have the time, money and incentive to build automated systems which hammer ticket services to buy up tickets which otherwise would have been sold directly to people attending an event. Whenever you hear about a concert or sporting event selling out within a ridiculously short period of time (sometimes 30 seconds after online sales open), it's because of this, and represents the creation of inefficiency…
represents the creation of inefficiency rather than the remedying of it. I can't think of a situation where scalpers are not contributing to efficiency. I think you've focussed on intentions of particular parties in the scenarios rather than the net market and that this has taken you to an incorrect conclusion. With scalpers, the venue venue has their risk removed (they lock in their sales early), and the scalpers in…
Earlier quoted context omitted.
Scalpers often have the time, money and incentive to build automated systems which hammer ticket services to buy up tickets which otherwise would have been sold directly to people attending an event. Whenever you hear about a concert or sporting event selling out within a ridiculously short period of time (sometimes 30 seconds after online sales open), it's because of this, and represents the creation of inefficiency…
represents the creation of inefficiency rather than the remedying of it. I can't think of a situation where scalpers are not contributing to efficiency. I think you've focussed on intentions of particular parties in the scenarios rather than the net market and that this has taken you to an incorrect conclusion. With scalpers, the venue venue has their risk removed (they lock in their sales early), and the scalpers in…
If scalpers are able to buy out an event in a matter of seconds/minutes after tickets go on sale, they will manage to artificially inflate the price for tickets (since the only way to get tickets will then be to pay the scalpers' prices). In effect, they will have decided that the natural supply/demand situation is unsuitable to them and manipulated the market to create an artificial scarcity. While this is to their own advantage, it is not efficient with respect to the ticket market.
Earlier quoted context omitted.
represents the creation of inefficiency rather than the remedying of it. I can't think of a situation where scalpers are not contributing to efficiency. I think you've focussed on intentions of particular parties in the scenarios rather than the net market and that this has taken you to an incorrect conclusion. With scalpers, the venue venue has their risk removed (they lock in their sales early), and the scalpers in…
The ticket seller might want a specific audience for demographic reasons, and or a sellout crowd for reputation reasons. Scalpers destroy this without giving a kickback to the ticket seller. They also increase the cost to the ticket buyers thus reducing market efficiency.
But that's unrelated to market efficiency. People in this thread are trying to define "seller not getting what they want" or "particular type of consumer not getting what they want" into market inefficiency, and it doesn't work like that.
I'm not an economist. Perhaps I'm wrong, but in this case please make the case in terms of a definition you can cite.
(In practical terms, they seller could reach that aim by giving people a cashback at a random time during the event for those who turned up - for example swapping a single ticket for a cashback at the end of the show as people were leaving the gates. The reason venues don't like scalpers is that they don't like price discovery because of reasons like these: (1) they want to be able to make a killing on late tickets, even if it's only for a few events per year and (2) they want to be able to sell tickets to poor people through some mechanisms at one price, and tickets to richer people through different mechanisms at another price, such as through coupon clipping or discount books or through ticket offices in poor areas, (3) they don't want tickets won through competitions being given away. That way they get to charge wealthier people a higher price than time-rich people who are typically poorer. That's inefficiency.)
Earlier quoted context omitted.
represents the creation of inefficiency rather than the remedying of it. I can't think of a situation where scalpers are not contributing to efficiency. I think you've focussed on intentions of particular parties in the scenarios rather than the net market and that this has taken you to an incorrect conclusion. With scalpers, the venue venue has their risk removed (they lock in their sales early), and the scalpers in…
I can't think of a situation where scalpers are not contributing to efficiency. If scalpers are able to buy out an event in a matter of seconds/minutes after tickets go on sale, they will manage to artificially inflate the price for tickets (since the only way to get tickets will then be to pay the scalpers' prices). In effect, they will have decided that the natural supply/demand situation is unsuitable to them and…
In effect, they will have decided that the natural
supply/demand situation is unsuitable to them and
manipulated the market to create an artificial scarcity.
The interests of the ticket maker and the efficiency of the economy are separate considerations.
Even in the situation where one scalper gets all the tickets, if they sell them to people who are themselves then free to onsell them then even this creates a more efficient market than what you have when the venue has a monopoly over the direction of transactions.
I always thought it was strange that event venues were able to coax legislators into introducing anti-scalping legislation. It's only now I see the arguments being brought against scalpers that I appreciate the murkiness of the issue when pitched from certain perspectives.
My theory is that it has something to do with them being successful and making millions without having to venture out and start their own business.
I mean, there are only a couple of roads that lead you to riches. Building a successful company is one of them, being successful in finance is another. I guess on this site, we've all chosen more or less, one road, so we have to rationalize to ourselves why we didn't pursue the other.
Or at least that's just how I feel sometimes.
Earlier quoted context omitted.
I can't think of a situation where scalpers are not contributing to efficiency. If scalpers are able to buy out an event in a matter of seconds/minutes after tickets go on sale, they will manage to artificially inflate the price for tickets (since the only way to get tickets will then be to pay the scalpers' prices). In effect, they will have decided that the natural supply/demand situation is unsuitable to them and…
Price discovery is not 'artificial inflation' - it contributes to efficiency. In effect, they will have decided that the natural supply/demand situation is unsuitable to them and manipulated the market to create an artificial scarcity. No - the situation where artificial scarcity occurs is where people who buy the tickets are prevented from onselling them. In this case the venue has an advantage that contributes to e…
The same total sum of goods and services is available with scalpers buying up the supply, but those goods and services are now provided at higher total cost than otherwise. This is, so far as I'm aware, the definition of inefficiency and consists solely of artificial inflation of prices.
As a soon to be graduate, how do I go about getting my foot in the door of a high frequency trading shop?
A very successful quant did an AMA (ask me anything) on Reddit a while back. There's a lot of content there, but totally worth the read. If I remember right his background was a masters in math from MIT. http://www.reddit.com/r/IAmA/comments/991kc/my_2009_adjusted...
Sure they're making money particularly from being smart, but would someone be able to explain to me how making money from money contributes to something worthwhile to society? Is it just that they're being that much quicker in smoothing out prices of stuff on the stock market? I'm not being snarky, would just like to know. Another slightly different topic: the trend during the Bush boom years is that the so-called 's…
Sure they're making money particularly from being smart, but would someone be able to explain to me how making money from money contributes to something worthwhile to society? Is it just that they're being that much quicker in smoothing out prices of stuff on the stock market? I'm not being snarky, would just like to know. Another slightly different topic: the trend during the Bush boom years is that the so-called 's…