1. We offer a novel explanation to this pricing behavior by focusing on changes to aggregate demand during the holidays. We find a large decrease to aggregate elasticity during the holiday season. Such increase in price sensitivity can be solely attributed to the entry of a segment of buyers who only purchase champagne during the holiday season. Our analysis focuses on the champagne market. However, we believe that demand-side plays a fundamental role in other markets that experience countercyclical pricing patterns, particularly markets where the exogenous shift in quantity demanded arises from new buyers during the peak-demand period. For example, goods primarily purchased during the religious holidays, such as matzo during Passover;Our study documents countercyclical pricing in the sparkling wine market: demand for sparkling wine during the holiday season increases, but prices consistently drop
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4. How retailers determine which products should go on sale: Evidence from store-level data;Daniel Hosken;Journal of Consumer Policy,2004