Quoted from robotron911:Is it harmless? No. By selling spots at a higher margin, the speculators bring up the market price higher than the manufacturers intent. What does that tell the manufacturer? Price my next products much higher as there is a margin that is being missed out. That is EXACTLY what has occurred with Stern games the last few years. Price inflation is driven by the secondary market, particularly transactions are occurring before the actual delivery of the product.
Your mistake is assuming all of this occurs in a vacuum. It does not.
If companies raise prices and price people out of their New product, those people don't disappear and neither does their motivation, they just go elsewhere. These practices result in healthy competetion every bit as much as they result in calamity.
Read more Adam Smith.
Bend, OR
