On Thursday, April 24, 2003, steve wrote:
> --- Mike <ipscone_at_msdsite.com> wrote:
> > On items were there is a fixed supply, like antiques and collectibles,
> > the only side of the equation that can increase is demand. Therefore,
> > the price rises to the fair and correct value. Simple!
>
> Wrong, the "available" supply has also increased on many fixed supply
> collectibles. People are digging stuff out of their closets that would of
> never been available for sale before, or available to only a very limited
> number of people.
I agree. The actual 'supply' we should talk about is not the total number
of units produced, but instead the number available for sale. And not only
do closet diggers affect this number, but the item's turnover rate is also
an important factor; some items simply change hands more often than others.
The total-produced number is really an asymptotic limit to the real supply,
which varies over time based on these, and possibly other, factors.
--
Jeffrey Sharp
Received on Sun Apr 27 2003 - 14:40:01 BST