Countercyclical pricing: a consumer heterogeneity explanation

Guler, Ali Umut; Misra, Kanishka; and Vilcassim, NaufelORCID logo (2014) Countercyclical pricing: a consumer heterogeneity explanation Economics Letters, 122 (2). pp. 343-347. ISSN 0165-1765
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We show that a seasonal good could be priced countercyclically due to the heterogeneous seasonal shifts in consumer valuations. We provide empirical support for our explanation based on two product categories (canned soup and tuna) studied in the literature.

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