Countercyclical pricing: a consumer heterogeneity explanation
Guler, A. U., Misra, K. & Vilcassim, N.
(2014).
Countercyclical pricing: a consumer heterogeneity explanation.
Economics Letters,
122(2), 343-347.
https://doi.org/10.1016/j.econlet.2013.12.025
(2014).
Countercyclical pricing: a consumer heterogeneity explanation.
Economics Letters,
122(2), 343-347.
https://doi.org/10.1016/j.econlet.2013.12.025
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.