Arbeitspapier
Why does the average price paid fall during high demand periods?
For many products the average price paid by consumers falls during periods of high demand. We use information from a large supermarket chain to decompose the decrease in the average price into a substitution effect, due to an increase in the share of cheaper products, and a price reduction effect. We find that for almost all the products we study the substitution effect explains a large part of the decrease. We estimate demand for these products and show the price declines are consistent with a change in demand elasticity and the relative demand for different brands. Our findings suggest, that for the data we examine, loss-leader models of retail competition are not the main explanation for price declines.
- Language
-
Englisch
- Bibliographic citation
-
Series: CSIO Working Paper ; No. 0086
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Nevo, Aviv
Hatzitaskos, Konstantinos
- Event
-
Veröffentlichung
- (who)
-
Northwestern University, Center for the Study of Industrial Organization (CSIO)
- (where)
-
Evanston, IL
- (when)
-
2006
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Nevo, Aviv
- Hatzitaskos, Konstantinos
- Northwestern University, Center for the Study of Industrial Organization (CSIO)
Time of origin
- 2006
Other Objects (12)
Why Are Professors "Poorly Paid"?
Line Planning for Different Demand Periods
Getting paid without GetPaid
Why are similar workers paid differently? The role of social networks
Why Are Average Hours Worked Lower in Richer Countries?
Why the community should welcome Average Jane and Joe
Why Are Average Hours Worked Lower in Richer Countries?
Pricing von paid content und paid services
Paid Work
Why Do People Demand Rent Control?
A location-routing problem model with multiple periods and fuzzy demands
Why did the average duration of unemployment become so much longer?
Why Are Professors "Poorly Paid"?
Line Planning for Different Demand Periods
Getting paid without GetPaid
Why are similar workers paid differently? The role of social networks
Why Are Average Hours Worked Lower in Richer Countries?
Why the community should welcome Average Jane and Joe
Why Are Average Hours Worked Lower in Richer Countries?
Pricing von paid content und paid services
Paid Work
Why Do People Demand Rent Control?
A location-routing problem model with multiple periods and fuzzy demands
Why did the average duration of unemployment become so much longer?
Why Are Professors "Poorly Paid"?
Line Planning for Different Demand Periods
Getting paid without GetPaid
Why are similar workers paid differently? The role of social networks
Why Are Average Hours Worked Lower in Richer Countries?
Why the community should welcome Average Jane and Joe
Why Are Average Hours Worked Lower in Richer Countries?
Pricing von paid content und paid services
Paid Work
Why Do People Demand Rent Control?
A location-routing problem model with multiple periods and fuzzy demands