Consumer & Producer Surplus
Nike sets Air Jordan retros at 200 dollars. The gap between that and what fans actually pay is the most studied in retail.
When Nike releases a new Air Jordan retro, the retail price is set in advance, often around $200 US dollars. The number of pairs is finite. The number of buyers wanting them is many multiples of that number. Nike could raise the price, they choose not to. The result is one of the most studied price gaps in modern retail. Within minutes of a release, the same pair appears on StockX, the Detroit-based marketplace founded in 2015 by Dan Gilbert and Josh Luber. A Travis Scott Air Jordan. One that retailed at $180 trades at $1,500. A Dior Air Jordan that retailed at 2,000 trades at 6,000. The reseller who flipped them captured the gap a second time over. Two different parties in the same transaction had been getting a deal that was not visible at the cash register. The fan who scored a pair below market value walked away with hundreds of dollars in extra value.
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