Why Does the Average Price of Tuna Fall During Lent?
AbstractFor many products the average price paid by consumers falls during periods of high demand. We use information from a large supermarket chain to decompose the decrease in the average price into a substitution effect, due to an increase in the share of cheaper products, and a price reduction effect. We find that for almost all the products we study the substitution effect explains a large part of the decrease. We estimate demand for these products and show the price declines are consistent with a change in demand elasticity and the relative demand for different brands. Our findings are less consistent with "loss-leader" models of retail competition.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11572.
Date of creation: Aug 2005
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This paper has been announced in the following NEP Reports:
- NEP-AGR-2005-09-11 (Agricultural Economics)
- NEP-ALL-2005-09-11 (All new papers)
- NEP-COM-2005-09-11 (Industrial Competition)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Why Does Turkey Get Cheaper Around Thanksgiving?
by Matthew Yglesias in Moneybox on 2012-11-21 15:07:00
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