<p>Over the last year many prominent examples come to mind, where there does not seem to be any limiting moral or ethical reasons, and are simply not available most of the time due to demand greatly exceeding supply. e.g. video game consoles such as the PS5, high end automobiles from most of the major automakers, etc.</p>
<p>Some cases can be explained by government regulation or company policy but why would the decision makers willingly choose to forgo the extra profits and/or tax revenue?</p>
<p>And instead allow other third parties to profit from the discrepancy? e.g. scalpers (Where the negative consequences are obvious and directly undermining the producer-consumer relationship)</p>
<p>In many other cases the profit incentives of the established players in a capitalist society are so strong that they are widely criticized as overriding other considerations. Yet it seems to be the opposite in these peculiar cases.</p>
<p>Notably there are some categories of goods and services that are largely priced according to market fluctuations such as gold jewellery and airline tickets.</p>

CC BY-SA 4.0
2021-10-05T17:17:36.677Z
This question is not clear, are you asking about why producers do not change prices fast enough, or are you asking if there are economic reasons that support the practice of scalpers buying and later selling these goods?
1muflon1
CC BY-SA 4.0
2021-10-06T13:59:52.993Z
@1muflon1 Why do producers not seek to maximize their profits?
M. Y. Zuo
<supply-and-demand><auctions><pareto-efficiency><pricing><efficient-markets>
Are there any economic reasons why luxury goods should not be auctioned off, or at least dynamically priced, when facing shortages?
M. Y. Zuo
# Are there any economic reasons why luxury goods should not be auctioned off, or at least dynamically priced, when facing shortages?

(Asked by: username_0 on 2021-10-05)

Over the last year many prominent examples come to mind, where there does not seem to be any limiting moral or ethical reasons, and are simply not available most of the time due to demand greatly exceeding supply. e.g. video game consoles such as the PS5, high end automobiles from most of the major automakers, etc.

Some cases can be explained by government regulation or company policy but why would the decision makers willingly choose to forgo the extra profits and/or tax revenue?

And instead allow other third parties to profit from the discrepancy? e.g. scalpers (Where the negative consequences are obvious and directly undermining the producer-consumer relationship)

In many other cases the profit incentives of the established players in a capitalist society are so strong that they are widely criticized as overriding other considerations. Yet it seems to be the opposite in these peculiar cases.

Notably there are some categories of goods and services that are largely priced according to market fluctuations such as gold jewellery and airline tickets.

**Tags:** supply-and-demand, auctions, pareto-efficiency, pricing, efficient-markets

> **Comments:**
> **username_1**: This question is not clear, are you asking about why producers do not change prices fast enough, or are you asking if there are economic reasons that support the practice of scalpers buying and later selling these goods?  
> **username_0**: @username_1 Why do producers not seek to maximize their profits?  

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## 0 answers

