Researcher ORCID Identifier
0000-0001-6311-3473
Graduation Year
2022
Date of Submission
12-2021
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Florian Madison
Terms of Use & License Information
Rights Information
2021 Evan S Kelly
Abstract
The sneaker industry has thrived for decades and continues to do so with popular brands such as Nike, Air Jordan and Adidas releasing new sneakers to meet the never-ending demand. When sneakers sell out upon release, the only other alternative for a buyer is to purchase them on the secondary sneaker market. From this, a bilateral price-matching scenario arises and the buyer and seller try to reach an agreement on a ‘fair’ price for the sneakers. But, what determines the resale price for a specific pair of sneakers? In this paper, a hedonic multivariate regression analysis is conducted to decipher the independent variables which most affect the average resale price of sneakers listed on StockX. I found that age, presence of a collaboration and model of a sneaker play the largest role in determining the resale price of a sneaker. To further assess the effect of sneaker age and collaboration on the average resale price, I’ve included an extensive history on both. Lastly, the influence of pop culture on sneakers has become very prevalent nowadays as seen in how The Last Dance, Kobe Bryant’s death, Travis Scott and Kylie Jenner’s Instagram photos and the Covid-19 pandemic all influenced the secondary sneaker market.
Recommended Citation
Kelly, Evan, "The Sole of the Economy: An Analysis of the Secondary Sneaker Market" (2022). CMC Senior Theses. 2859.
https://scholarship.claremont.edu/cmc_theses/2859
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
