A scalper is an individual or entity who buys goods, tickets, or assets with the intention of reselling them at a significantly higher price, often capitalizing on high demand and limited supply. Scalpers often operate in unregulated markets or exploit arbitrage opportunities. Their activities are frequently associated with events, such as concerts, sporting events, and theatrical performances, or the trading of limited-edition products, where demand drastically outweighs the available supply. The practice is sometimes considered unethical or illegal, depending on the context and jurisdiction. They leverage information asymmetry, and sometimes employ automated bots, to rapidly acquire inventory and maximize their profit margins by preying on consumers' willingness to pay a premium for access or ownership. This practice can be considered unethical, as it limits accessibility to the original offering.
Scalper meaning with examples
- John, a dedicated concert enthusiast, was deeply disappointed when he couldn't get tickets to see his favorite band. He found them online, but they were being sold by a scalper at three times the original price. This left John with a difficult choice – pay the exorbitant price or miss the show altogether. The scalper's actions highlighted the unfairness of the secondary market.
- During the release of a highly sought-after game console, scalpers bought up all the available units from retailers as soon as they were available. They then listed them on online marketplaces for inflated prices, preventing genuine gamers from acquiring the console at its intended cost and forcing many consumers to buy from them, who took advantage of the high demand.
- The art collector was frustrated by the limited-edition prints being offered by a scalper online. The dealer had hoarded a large quantity of the prints and was attempting to sell each of them for double the price, with a tight deadline for their availability. This made the collector doubt the ethics of how the artworks had become available, thus raising concerns about the artist's original intention.
- The company faced significant backlash after discovering that several of its exclusive product releases had been immediately bought up by scalpers. The company investigated, looking for a solution to combat the automated bots and deceptive sales techniques. The goal was to find a solution that would allow fans to obtain products fairly and for the intended retail price.
- Following the announcement of a major film premiere, ticket scalpers moved in immediately, buying up most of the available tickets. They then re-listed them at inflated prices on secondary markets, taking advantage of the high anticipation among moviegoers. This made it difficult for ordinary fans to attend, pushing them into the realm of profiteering.