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Collectible Pricing and Collector Utility: The Role of Production Commitments

Author

Listed:
  • Corey J.M. Williams

    (Shippensburg University)

  • Kole Reddig

    (West Virginia University)

  • Adam Nowak

    (West Virginia University)

Abstract

This paper investigates the effect of production commitments on consumers of collectable goods.Using data on prices for Magic: The Gathering trading cards, we estimate that the reprinting of certain card varieties caused a 34% decrease in the relative price of reprinted cards. We interpret this estimate with a model of a forward-looking consumer that views collectibles as both a source of enjoyment and a store of wealth. Using a mapping between structural parameters of the model and difference-in-difference sregression parameters, we compute lifetime discounted utility decreased by as much as 14% for collectors holding mainly reprinted cards.

Suggested Citation

  • Corey J.M. Williams & Kole Reddig & Adam Nowak, "undated". "Collectible Pricing and Collector Utility: The Role of Production Commitments," Working Papers 24-03, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:24-03
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1073&context=econ_working-papers
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    More about this item

    Keywords

    production commitments; secondary markets; collectibles; demand estimation;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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