Very funny and enlightening analysis. I've seen the fringes of algorithmic pricing a few times in other categories -- especially out-of-print DVDs or VHS tapes.
Example: don't ask me why I enjoy the movie My Dinner With Andre, but for whatever reason, I do. A few years back, I wanted to buy a copy of the DVD and checked Amazon. It turned out that the DVD was long out of print, and new copies were going for $400 apiece. I figured this price was high, but nevertheless, it was nothing that couldn't be explained by actual rarity and supply/demand metrics. Rare DVDs have been known to climb into the hundreds of dollars, especially if new and unopened. But I came back a few days later, and the price was $1932.78 (or something unusual to that effect). The next day, $3500 and change. Which struck me as odd, to say the least. Was some nefarious Goldman trader attempting to fix the market for Wallace Shawn's back catalog?
Needless to say, I didn't love the movie quite that much. So I passed. These days, Criterion has released a new DVD version of the film, and accordingly, everything's dropped back down to about $30 per copy -- including the price of the original, OOP version. I feel sorry for anyone who actually might have taken the plunge at $400, which is not out of the realm of possibility. That's a lot of money for a film about two guys having dinner.
Example: don't ask me why I enjoy the movie My Dinner With Andre, but for whatever reason, I do. A few years back, I wanted to buy a copy of the DVD and checked Amazon. It turned out that the DVD was long out of print, and new copies were going for $400 apiece. I figured this price was high, but nevertheless, it was nothing that couldn't be explained by actual rarity and supply/demand metrics. Rare DVDs have been known to climb into the hundreds of dollars, especially if new and unopened. But I came back a few days later, and the price was $1932.78 (or something unusual to that effect). The next day, $3500 and change. Which struck me as odd, to say the least. Was some nefarious Goldman trader attempting to fix the market for Wallace Shawn's back catalog?
Needless to say, I didn't love the movie quite that much. So I passed. These days, Criterion has released a new DVD version of the film, and accordingly, everything's dropped back down to about $30 per copy -- including the price of the original, OOP version. I feel sorry for anyone who actually might have taken the plunge at $400, which is not out of the realm of possibility. That's a lot of money for a film about two guys having dinner.