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Demand for Rarity: Evidence from a Collectible Good

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  • Jonathan E. Hughes

Abstract

Markets for art, coins and other collectibles, culinary delicacies and eco‐tourism suggest that consumers value the rarity of many goods. While empirical evidence supports higher prices for rare goods, isolating the value of rarity has proven difficult. I analyze prices for a collectible card game and show goods that are designated as rare trade at higher prices than functionally equivalent substitutes. Importantly, I use novel features of this market to account for scarcity, observed and unobserved product characteristics and separately identify rarity effects. These results have important implications for markets ranging from luxury goods to conservation of endangered species.

Suggested Citation

  • Jonathan E. Hughes, 2022. "Demand for Rarity: Evidence from a Collectible Good," Journal of Industrial Economics, Wiley Blackwell, vol. 70(1), pages 147-167, March.
    • Handle: RePEc:bla:jindec:v:70:y:2022:i:1:p:147-167
    DOI: 10.1111/joie.12262
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    References listed on IDEAS

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    Cited by:

    1. 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.

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