The economics of LP reissues

no. The demand is not enough for a reissue.
The famous stuff being reissued is because a demand is there because it is a truely great performance/album. The money is not an issue. Many of the high dollar LPs are rare because nobody bought them in the first place. AND because speculators drive up the price. Folks that want stuff BECAUSE it is rare, or because they think it is an 'investment'. A lot of the stuff selling for big bucks would be a total flop if it were reissued.
Much of the stuff that is big dollars had reissues. Like Blue Note LPs. They are some of the highest value Lps and have been reissued many many times.
Those obscure items.. no way. Also, the original tapes may be gone. The owners nearly untracable for a lot of the classical stuff on obscure labels. So a reissue would be a transcription from another LP.
Anyway, if a buck was to be made reissuing something, it would be done.
So do not look for those rare Lps to be made anytime soon.
Though for the jazz collector, some of the finest stuff is being reissued. Ditto Rock, not a lot, but at least some.

I somewhat disagree with Elizabeth, at least partially. I think that the record companies are indeed keeping an eye on this.

This has proved to be true based upon recent re-issues of Porcupine Tree's "In Absentia", Nine Inch Nails' "Downward Spiral", Tool's "Aenima", and Wilco's "Summerteeth", all of which were going for between $100 and $200 each on Ebay, prior to them being reissued. (I will be picking up the "In Absentia" reissue myself shortly, so "Thanks Record Company for noticing!" The rest of these I already own as original pressings.)

There are several records that would sell very quickly, and probably in fairly large numbers, were they to be re-issued. Records such as:

1. Dave Matthews Band- "Before These Crowded Streets", (currently running about $200+ on Ebay, used)

2. Smashing Pumpkins - "Mellon Colie and the Infinite Sadness", (also running about $200+ on Ebay, used)

(Now personally, I am not sure I want them to re-issue them, since I have original issue copies, and re-issues, especially if well done, would probably drive the price down of my original issue copy, at least I think they would. (However, if they cause the record to become even more popular, maybe it would drive the prices upward. I am not sure.)

However, I do agree with Elizabeth that there are a lot of rare records that would not be worth re-issuing, especially those that are not currently popular enough to actually get played, but merely produced for a very few collectors to stash away.

My two cents worth.

Having a knowledge of the business model of LP reissues, it would take 3000 sales of a single title to break-even. That assumes typical royalties, mastering, stamping, packaging and distribution to retailing. Few titles would get that demand.