True, Bill V, but then again, I can play Devil's Advocate here.
For the past three months, Elmo TMX (aka Tickle Me Elmo Extreme) has been unavailable at almost all retail outlets and online stores. The doll sells for $39.99, but since you can't find them in real and onlines stores because they fly off the shelfs, they are on eBay for $130, and more.
Now, I have followed this item closely the past few months, even subscribing to the website: www.tmxtracker.com.
Finally, yesterday, Target.com started shipping them again. And, for about 10 hours they were taking orders again. Subsequent, the price on eBay has dropped, but the supply increased. There has to be close to 13,000 of them on eBay right now...and the price has dropped (that's good).
The average price on eBay has dropped to around $50 to $50. Still a nice profit for a scalper.
However, here is the rub in the way of conjecture:
The doll is NOT really in limited supply, IMHO. The supply was quite adequate for the demand. The problem seems to be eBay. eBay scalpers expected this to be a product that was hot this Christmas, and thereby they have been buying them up in droves...and flooding eBay with them, to the point that the ONLY place you can get them is on eBay at inflated prices. If there WERE no eBay they would still be on the store shelves, ready to be bought at $39.99....so is my conjecture of which I cannot prove.
The PS3 isn't really the same because it *is* in very limited supply. Still, I have heard that some ridiculous figure like 3 out of every 5 PS3's bought from retailers this past month will be resold on eBay.
Food for thought.