The Economics of Secondhand Retail Trade: An Analysis of the Market for Ukay-ukay

Abstract

In recent years, the market for secondhand garments has flourished from its considered capital, Baguio City, province of Benguet. It is clear that people see this market as an alternative to counterpart goods burdened with soaring prices; however, with the invocation of laws that prohibit importation and sale of secondhand garments, consumers of such commodity have different reactions and suggest alternative solutions so as not to be affected negatively (in terms of the economic dimensions of their lives). This paper tries to look at these issues by quantifying consumer surplus in this market and estimating the market demand. Such will then give some overview of the dynamics of such commodities' consumers and suppliers.