During the mid-1980s, Cabbage Patch–mania swept across America. Cabbage Patch Kids are homely but cuddly, sixteen-inch-long baby and toddler dolls, yarn-haired and made of soft material. Unlike most other toys, each one is "humanized" and "individualized." Each Kid has its very own first and middle name, as well as a unique combination of hairstyle, hair coloring, clothing, skin tone, and facial characteristics, all the way down to the placement of freckles. Some have pacifiers, and each comes complete with birth certificate and adoption papers. At the height of their popularity, Cabbage Patch Kids were the toys of choice for millions of children, whose parents went to extreme lengths to obtain them. During the 1983 Christmas season, the toys, whose retail price was $25, were selling for up to $2,000!

Cabbage Patch Kids came into being as Little People dolls, custom-made toys that were "born" in...