Economics Behind Limited Edition Products

Basic economic theory suggests that when a product is produced in limited supply, the demand for that product is very high. As a result, the company producing the limited product can charge a much higher price. However, in the case of sneakers, the economics is not as straightforward. Sneakerheads and sneaker culture has developed a drive and demand for rare and limited edition sneakers, creating a huge market for the resale market. Sneakers that were originally sold for $100 might resell for three times the price. For example, Sean Wotherspoon collaborated with Nike to release a new Air Max 97 that were originally sold for $160 but there were so few of these shoes released that the resale market is selling it for nearly $1000. <a href="https://medium.com/@ifashionseo/economics-behind-limited-edition-products-1c5e5d7e8b85">Learn More</a>