What is Theory Of Retrospective Return?
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Theory of retrospective return; when one purchases a good from an auction, online or not, in the view that should the person ever require that item in the future, he quite possibly purchased it at a price well below market or retail price. Therefore making a retrospective return.
James buys 65 fun size garden gnomes because they were only $15 in an online auction. Several weeks later, James is held hostage and his captors demand 65 fun size garden gnomes. Fun size garden gnomes retail for $2 each. The Theory of retrospective return demonstrates that James made a return of $115.
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