With the substantial growth of the secondary sneaker market, online secondary sneaker marketplaces have explored. However, how sneaker brands benefit from this growth of the secondary sneaker market is unclear. Sneaker brands could take over the secondary market by either selling more sneakers or increasing prices. Instead, they have maintained a strategy of selling sneakers in limited quantities at a relatively affordable price range. We analyze the quantities and prices of a brand’s product under two scenarios—one with and one without a secondary market—and investigate the effect of the secondary market on the brand’s pricing and quantity decisions. We also investigate the impact of the secondary market on aggregated consumer surplus.
Hyun, Samuel Junwoo and Koh, Byungwan, "Benefiting from Resellers: The Impact of the Online Secondary Sneaker Market on the Sneaker Brand's Profit and Consumer Surplus" (2020). PACIS 2020 Proceedings. 168.
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