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    Unwrapping the Hot-Toy Problem: An Analysis of Peak Demand and Price Dispersion in the Holiday Market for Zhu Zhu Pets

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    Subject
    Zhu Zhu Pets; price dispersion; peak demand; sellout toys; holiday season; shortages; eBay
    Author
    Clair, John D.
    Issue
    econ_student
    Date
    2010-04-01
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    URI
    https://scholar.oxy.edu/handle/20.500.12711/9075
    Abstract
    The sold out toy is a recurring theme during the holiday season, so why donÕt manufacturers and retailers increase the price of these holiday season sellout products? This work considers whether a larger shortage implies a more elastic demand curve and a smaller opportunity cost to the manufacturer and retailers of maintaining the shortage than might be expected. It does so by using the dispersion of final bid prices on eBay of the Zhu Zhu Pet Hamster Pipsqueak as a measurement of consumer price sensitivity. It also considers whether weekends represent min-demand peaks.
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