This podcast episode delves into the economic puzzle of why the price of turkeys decreases during the high-demand holiday season. The hosts discuss two theories: supermarkets using turkeys as loss leaders and customers being more price-sensitive during this time. An interview with a food economist reveals that both explanations hold some truth. The episode raises inquiries about pricing dynamics and consumer behavior during the holidays.
Takeaways
• The price of turkeys decreases during peak demand in the holidays, a phenomenon known as counter cyclical pricing.
• Supermarkets may use turkeys as loss leaders to attract more customers who would then purchase other products.
• Customers during Thanksgiving might be more price-sensitive, leading to lower prices for turkeys.
• Countercyclical pricing is influenced by price-sensitive customers and increased competition during the holidays.
• The increase in the number of stores selling turkeys during the holidays leads to downward competitive pressure on prices.
• Home production, such as preparing side dishes for Thanksgiving, is not included in official measures of the economy.
• The concept of home production and the challenges of measuring its extent in the economy are discussed.
• Optimizing seating arrangements can prioritize maximizing overall happiness or ensuring stability.
• Stability is often prioritized when matching medical students with residency programs or public school students with high schools.
• Brute force simulation can be used to achieve a stable seating arrangement.
• The hosts achieve a stable seating arrangement for their Thanksgiving table and enjoy their meal.
• The episode reflects on the meaning and importance of Thanksgiving, despite minor imperfections.
• The next episode will explore the issue of excess in the state of Oregon and efforts to legalize selling it outside the state.
