Planet Money A very Planet Money Thanksgiving
35 snips
Nov 22, 2023 Thanksgiving isn’t just about turkey; it's a fascinating economic phenomenon! Discover why turkey prices drop despite soaring demand. The podcast dives into the hidden value of home cooking and the overlooked contribution of unpaid labor to the economy. Enjoy humorous insights into the challenges of seating arrangements at festive gatherings, with entertaining anecdotes exploring the science of social interactions. Finally, savor the joy of Thanksgiving feasts, complete with playful twists on beloved dishes and a touch of heartfelt gratitude.
AI Snips
Chapters
Transcript
Episode notes
The Turkey Price Mystery
- Turkey prices drop by 20% during Thanksgiving, despite a 750% demand surge.
- This counterintuitive pricing pattern is an economic mystery called counter-cyclical pricing.
Counter-Cyclical Pricing
- Counter-cyclical pricing is seen in other seasonal products like champagne, tuna, and avocados.
- Two main theories explain this: loss-leader strategy and price-sensitive customers.
Xiao Dong's Turkey Theory
- Economist Xiao Dong noticed stores don't always stock whole turkeys.
- This led to his theory about increased store competition during Thanksgiving, driving prices down.