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Does seasonal product rotation contribute to countercyclical pricing and cheaper turkeys during Thanksgiving, Christmas, and Easter?

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  • Dong, Xiao

Abstract

I find empirical evidence of countercyclical pricing in retail turkeys where demand increases over 750% but prices drop 21% during the holiday periods of Thanksgiving, Christmas, and Easter. I propose seasonal product rotation as an additional explanation for countercyclical prices as some retailers only enter the market during periods of high demand. Empirically, I show that 16% more retail stores carry turkeys during high demand holiday periods, which could be an additional contributing factor for lower prices.

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  • 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).
    • Handle: RePEc:eee:ecolet:v:225:y:2023:i:c:s0165176523000575
    DOI: 10.1016/j.econlet.2023.111032
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    References listed on IDEAS

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    Cited by:

    1. Sweitzer, Megan & Byrne, Anne T. & Page, Elina T. & Carlson, Andrea & Kantor, Linda & Muth, Mary K. & Karns, Shawn & Zhen, Chen, 2024. "Development of the Food-at-Home Monthly Area Prices Data," Technical Bulletins 342467, United States Department of Agriculture, Economic Research Service.

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    More about this item

    Keywords

    Seasonal demand; Countercyclical pricing; Turkey prices; Firm entry; Seasonal product rotation;
    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
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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