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Pricing (almost) any used goods: a first step towards a theoretical framework

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  • cianni, victor

Abstract

From the latest technological gadget to the multi-century collectible item, millions of used goods are exchanged on marketplaces every day. Yet, there have been very few attempts to propose a pricing theory that could help buyers and sellers set a price at any point in time. In this paper, we build a robust framework and introduce a cohort-specific model to explain how the price of used goods evolves over time. Despite its simplicity, we believe that this model could be applied to an extensive range of used goods.

Suggested Citation

  • cianni, victor, 2020. "Pricing (almost) any used goods: a first step towards a theoretical framework," MPRA Paper 105053, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105053
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    File URL: https://mpra.ub.uni-muenchen.de/105053/1/MPRA_paper_105053.pdf
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    References listed on IDEAS

    as
    1. Robert H. Porter & Peter Sattler, 1999. "Patterns of Trade in the Market for Used Durables: Theory and Evidence," NBER Working Papers 7149, National Bureau of Economic Research, Inc.
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    6. Waldman, Michael, 1996. "Durable Goods Pricing When Quality Matters," The Journal of Business, University of Chicago Press, vol. 69(4), pages 489-510, October.
    7. Dobrynskaya, Victoria & Kishilova, Julia, 2022. "Lego: The Toy Of Smart Investors," Research in International Business and Finance, Elsevier, vol. 59(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Keywords: used goods; cohort-specific; pricing; second-hand markets; beta-type;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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