I don’t have a great answer for you, but may be able to point you in the right direction. In economics the market for used goods is known as a “secondary market.” This is often used in relation to financial instruments, where the stock market that you trade on is the secondary market, while the primary market is the market for initial public offerings (IPOs) and follow-on offerings. In finance it is widely believed (and I assume there is some support, although I haven’t looked specifically) that the a secondary market for a financial instrument is an important factor in establishing it’s primary market price, but a healthy secondary market in this case actually serves to increase the price in the primary market, because purchasers will pay a premium for higher liquidity. For example, when a corporation issues new bonds, investors will consider how actively traded the corporations existing shares are when determining their willingness to pay.
I assume that for physical goods the dynamics of the secondary market have a very different impact on the primary market, but a search for “secondary markets” on google scholar should probably turn up a starting point.
I don’t have a great answer for you, but may be able to point you in the right direction. In economics the market for used goods is known as a “secondary market.” This is often used in relation to financial instruments, where the stock market that you trade on is the secondary market, while the primary market is the market for initial public offerings (IPOs) and follow-on offerings. In finance it is widely believed (and I assume there is some support, although I haven’t looked specifically) that the a secondary market for a financial instrument is an important factor in establishing it’s primary market price, but a healthy secondary market in this case actually serves to increase the price in the primary market, because purchasers will pay a premium for higher liquidity. For example, when a corporation issues new bonds, investors will consider how actively traded the corporations existing shares are when determining their willingness to pay.
I assume that for physical goods the dynamics of the secondary market have a very different impact on the primary market, but a search for “secondary markets” on google scholar should probably turn up a starting point.
“effect of secondary market on primary market” came up with “Are secondary markets profitable for item sales based businesses?”, which seems to be related to the question I had in mind—thanks!