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Profiting from the Ignorance of Others

Episode: 19 June 2011, Question 4

Is it moral to take advantage of another person's ignorance? Suppose that I drop by a yard sale to see whatever is up for grabs. While rummaging through the junk for which the owners no longer see a reason to keep, I catch sight of an item which I know to be extremely rare and valuable. Would it be moral for me to pay the low asking price, then resell the item at auction for a much higher price, knowing that the owners are clueless about its value?

My Answer, In Brief: It's perfectly moral to profit in huge ways from voluntary and honest transactions: the seller is responsible for ensuring that his prices reflect market value.

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