I'll break it down for you, Tonto.
I think mostly speculators lah...
Speculation assumes a reasonable liquidity of the market, especially the intertemporal price retention in the used goods market. I don't think you can buy a G-shock and expect the sale price to remain, or to be even more ridiculous, increase in the secondary markets.
If the batch size is >100, I wouldn't call it
limited edition, no matter how you cut it.
I will retract and apologise once Ah Long accepts G-Shocks as collateral/payment.
Sometimes when the product is cheap, not many people will notice them. But once priced highly, skeptics will at least take another look at the watch and try to understand the value behind the price sought.
This is a commingling of anchoring bias and ignorance in plurality, not a function of the Marshallian S-D laws. In layman's term, it is a flaw of Man to be irrationally curious about that which does not seem rational - this is particularly so with regards to overpricing.* This market niche is a marketer's wet dreams, where maximal consumer surplus can be extracted. It's elegant because it doesn't have to make sense.
*Overpricing does not necessarily denote hidden intrinsic value. On the flipside, absolute underpricing almost always suggest the existence value.
A friend of mine thinks AAPL is going to hit $400. If he follows the sheep's market and has timing to offload at that peak, then he is likely to make a quick 15%. I, on the other hand, think the company is already overvalued by the decreasing 30-year T-bill yields alone, and for the share to be valued fairly at $400, they need to sell twice as much iPhone5s/Ipads/Ipods.
Get the analogy?Well, for Casio G-shockers it may be a frenzy rush to get one off the shelves, perhaps?
This, however, is Marshallian - an obvious disconnect from your above paragraph.
value = high expectations whether sentimental value , perceived value = willing to part high bucks for it even a basic casio?
luxury goods not price elastic
To succintly quote Buffett:
Price is what you pay, value is what you get.
Ya, I know luxury goods, in economics parlance, have inelastic demand. That is a general assertion. But we don't know that, you see. We don't know if Casio and retailers are actually profitting from increased prices, or simply responding to production undercapacity.
Otherwise, Casio simply has an army of diehard G-shock fanatics. It's all just supply and demand. Rational or not, that's a different story.
