Measuring the impact of rarity on price: evidence from NBA Top Shot

Yeonjoon Lee ()
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Yeonjoon Lee: Quantitative Supervision & Research Group, Federal Reserve Bank of Richmond

Marketing Letters, 2022, vol. 33, issue 3, No 10, 485-498

Abstract: Abstract I measure the impact of rarity on price. The main challenge is that usually rarity is positively correlated with quality. In addition, sometimes price also affects rarity. To overcome these difficulties, I study an NBA digital collectibles market called NBA Top Shot where those concerns are well addressed. By analyzing novel and rich data sets, I find that the elasticity of price with respect to circulation (reverse rarity) is −0.74 on average. I also find that less popular products are more elastic than more popular products are.

Keywords: Rarity; Digital collectibles; NBA Top Shot; Non-fungible tokens; Blockchain (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11002-022-09636-5

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