Deregulated Markets Punish Greed, Gougers

Perhaps it would be restful to give moral reasoning a rest and give economic reasoning a chance. Until recently, many states regulated ticket "scalping" by limiting allowable markups of ticket prices or by outlawing secondary markets for some events. Most of these states have repealed or relaxed those laws, even though a 1997 New York Times editorial demanded more aggressive enforcement of anti-scalping laws lest the public be victimized by "price-gouging ticket agents."

Actually, would-be price gougers are at the mercy of a public armed with information, which is what markets generate and communicate. Greed is worse than a moral defect; it is a cause of foolish pricing. That is why markets know it when they see it. And when markets are allowed to operate, greed generates its own punishment.

~George Will's column today in the Washington Post, based on this study on ticket sales on Stubhub.

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Deregulated Markets Punish Greed, Gougers

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