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Unformatted text preview: nostalgia efl'ect is due to an increased demand for a star‘s memorabilia as a result of the media attention surround- ing a player’s death then as the media attention fades. demand should also fall off over time. The prediction is that the nostalgia effect should be, at least to some extent, a temporary phenomenon. To test whether the nostalgia effect is temporary in nature, the card prices were examined for an additional year past the athlete‘s death for seven of the eight players who experienced a statistically significant increase in the relative prices of their cards in Table 2. Eddie Matthews had to be excluded from the sample because his death occurred too recently to examine. Table 3 shows the increase in price of each player’s cards relative to complete sets for the year around their death as well as the relative change in each player’s card prices between the half-year before the player‘s death and an additional year past the post—death date used previousiy. For several other athletes. price data is not available for all cards or all card condi- tions for every year past the player's death so the sample size for each Hall of Famer may not be the same between Tables 2 and 3. In addition, the change in relative prices between the time period just after a player‘s death and the time period one year hence is also shown. The increase in card values foi-lowing a player‘s death is indeed at least partially a temporary effect. While relative card prices for the seven remaining players in our sample rose an average of [3.85% in the six to nine months follow- ing the stars’ deaths. over the following year roughly one- quarter of that increase disappears so that [8 to 21 months past the players’ deaths. average card prices Were up only 10.76% relative to complete card sets. Of the seven players examined. four experienced a decrease in card prices after the immediate upward surge while only two experienced further increases. Furthermore. three of the players whose card prices retreated from their highest level, experi- enced statistically significant price decreases while neither of the additional price increases was so. For the seven players as a whole. the average decline of 3.09% was significant at the 1% level. IV. CONCLUSION Evidence indicates that the price of celebrity memorabilia rises substantially immediately after the person‘s death. One explanation ofiered for this phenomenon centres on the increased demand for these items in anticipation of the higher prices they will command as a consequence of a supply fixed by the person’s death. This argument, how- ever. fails to adequately explain the transient nature of the postmortem price increase. The purpose of this article was to offer an explanation for the temporary increase in the price of a collectible following the death of the celebrity with whom it is associated. ...
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