Tuesday, November 19, 2013

The Economics of Ice Cream Revisited - this Time with Turkey

Long time readers may remember a post I made awhile back about why ice cream prices don't rise during the summer (or equivalently, don't fall during the winter) like we'd expect. Well, an article in the New York Times by the always interesting Catherine Rampell tackles the same question, this time from the perspective of cheap turkey around Thanksgiving.

Rampell touches on a number of theories for why we observe this kind of pricing behavior, including the one mentioned in the paper I discuss in my post. As Rampell writes:
Consumers might get more price-sensitive during periods of peak demand and do more comparison-shopping, so stores have to drop their prices if they want to capture sales. 
All the other reasons she discusses are plausible and interesting as well. Give it a read.

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