Consumer Choice & Behavioral

Used Markets

Jonah bought a sex doll that he believed looked like Amy. He planned to dress the doll up and tease Amy throughout the day, but he realized that it got out of hand. He approaches Amy in the parking lot to apologize and show her a receipt as proof that he returned the doll. He ended up paying a very large restocking fee, more than the doll was worth, because there isn’t much of a market for used sex dolls.

Jonah actually summarizes a bit of Akerlof’s Market for Lemons paper in that he knows more about the quality of the doll (that it hasn’t been used at all) than the person who may purchase it. The collapse of the used market exists here because Jonah ends up paying money to not have the doll anymore.