Countercyclical pricing: A consumer heterogeneity explanation

Vilcassim, N, Guler, U and Misa, K (2013) Countercyclical pricing: A consumer heterogeneity explanation. Economics Letters, 122 (2). pp. 343-347. ISSN 0165-1765

Abstract

We show that a seasonal good could be priced countercyclically due to the heterogeneous seasonalshifts in consumer valuations. We provide empirical support for our explanation based on two product categories (canned soup and tuna) studied in the literature.