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Temporary Sales In Response To Aggregate Shocks

Author

Listed:
  • Benjamin Eden

    (Vanderbilt University)

  • Maya Eden

    (Brandeis University)

  • Oscar Oflaherty

    (Vanderbilt University)

  • Jonah Yuen

    (Vanderbilt University)

Abstract

Using scanner data from supermarkets, we establish some stylized facts about temporary sales and argue that temporary sales play an important role in the reaction of prices to small demand shocks. We use a model in which temporary sales are reactions to aggregate shocks and the accumulation of unwanted inventories to account for our empirical findings.

Suggested Citation

  • Benjamin Eden & Maya Eden & Oscar Oflaherty & Jonah Yuen, 2020. "Temporary Sales In Response To Aggregate Shocks," Vanderbilt University Department of Economics Working Papers 20-00001, Vanderbilt University Department of Economics.
    • Handle: RePEc:van:wpaper:vuecon-sub-20-00001
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    References listed on IDEAS

    as
    1. Bernardo Guimaraes & Kevin D. Sheedy, 2011. "Sales and Monetary Policy," American Economic Review, American Economic Association, vol. 101(2), pages 844-876, April.
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    More about this item

    Keywords

    Temporary Sales; Unwanted Inventories; Sequential Trade;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • E0 - Macroeconomics and Monetary Economics - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

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