iPads and Jordans: The Economics of Hot-Ticket Items

December 2011 saw the re-launch of one of the most popular pair of sneakers of all time.

The release of the Air Jordan XI “Concord saw mini-riots and consumer craziness in cities across the country.

Long lines are the norm for the release of a highly-anticipated consumer good.

So is widespread disappointment.

The onllne marketplace for the Jordans was no different.

Websites crashed— as expected. The few people who were lucky enough to get their orders in are now experiencing inordinate wait times before they receive their shoes.

It’s the classic “Bait and Wait”—-quite different from the infamous “Bait and Switch”, but frustrates just the same.

Bait and Wait:

Companies tease consumers with limited stock and/or rock-bottom prices on a hot-ticket item. Deceptively long-waits and unanticipated rises in price often ensue.

Price discrimination at its finest (or worst, depending on your position in the market).

If we ever adopt a universal healthcare system, we might encounter this sort of bottleneck on a regular basis.

Something to think about….

Leave a Comment

Your email address will not be published.