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Lack of local pricing response in national retail chains during large and localized demand peaks: Evidence from college move-ins and instant noodles

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  • Dong, Xiao

Abstract

I utilize the predictable stockpiling of instant noodles during move-in week in college towns to examine how national retailers adjust prices in response to large and localized demand peaks. I find unit sales of instant noodles increase over 250% during college move-in week compared to sales in non-college town stores. Furthermore, I find national retail chains do not adjust prices locally in response and maintain uniform pricing.

Suggested Citation

  • Dong, Xiao, 2022. "Lack of local pricing response in national retail chains during large and localized demand peaks: Evidence from college move-ins and instant noodles," Economics Letters, Elsevier, vol. 213(C).
  • Handle: RePEc:eee:ecolet:v:213:y:2022:i:c:s0165176522000611
    DOI: 10.1016/j.econlet.2022.110384
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    References listed on IDEAS

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    Cited by:

    1. Patrick W. McLaughlin & Alexander Stevens & Shawn Arita & Xiao Dong, 2023. "Stocking up and stocking out: Food retail stock‐outs, consumer demand, and prices during the COVID‐19 pandemic in 2020," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1618-1633, September.
    2. Dong, Xiao, 2023. "Does seasonal product rotation contribute to countercyclical pricing and cheaper turkeys during Thanksgiving, Christmas, and Easter?," Economics Letters, Elsevier, vol. 225(C).
    3. Zeballos, Eliana & Dong, Xiao & Islamaj, Ergys, 2023. "A Disaggregated View of Market Concentration in the Food Retail Industry," USDA Miscellaneous 333546, United States Department of Agriculture.
    4. MacDonald, James M. & Dong, Xiao & Fuglie, Keith O., 2023. "Concentration and Competition in U.S. Agribusiness," Economic Information Bulletin 337566, United States Department of Agriculture, Economic Research Service.

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    More about this item

    Keywords

    Localized demand peaks; Pricing response; Uniform pricing; Instant noodles; College move-in; Stockpiling;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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