Here is an article regarding scalping.
Kahneman, Daniel, Jack L. Knethsch and Richard Thaler. 1986. "Fairness as a
Constraint on Profit Seeking: Entitlements in the Market." American Economic
Review, 76: 4 (September): pp. 728-41.
728: Okun. 1981. Prices and Quantities ..., p. 170, says "firms in sports and
entertainment industries offer their customers tickets at standard prices for
events that clearly generate excess demand. Popular new models of automobiles
may have waiting lists that extend for months." explained this in terms of
hostile reaction of customers.
728: Akerlof QJE 1980 and 1982 says that firms invest in goodwill and high
morale. Arrow 1973, Public Policy, trusted suppliers may be able to operate in
markets that would otherwise be devastated by lemon problem.
737: Authors' survey shows that "many actions that are both profitable in the
short run and not obviously dishonest are likely to be perceived as unfair
exploitations of market power."
729: Authors' survey shows that public believes in system of dual entitlements.
Present capitalists and workers are both entitled to current level of returns.
Punish people who violate this standard of fairness." Cagan, Phillip. 1979.
Persistent Inflation: Historical and Policy Essays (Columbia University Press):
p. 18 "Empirical studies have long found that short-run shifts in demand have
small and often insignificant effects [on prices]". Dacy, Douglas C. and Howard
Kunreuther. The Economics of Natural Disasters (NY: Free Press) show that firms
maintain prices even in face of natural disasters.
Also Olmstead and Rhode. 1985. show that Standard Oil kept low prices in 1920
in face of shortage. they "were clearly concerned with their public image and
tried to maintain the appearance of being 'fair'"
738-9: Yet prices vary in response to changes in demand.
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Michael Perelman
Economics Department
California State University
[EMAIL PROTECTED]
Chico, CA 95929
530-898-5321
fax 530-898-5901
