AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Planet Money
A very Planet Money Thanksgiving
Nov 22, 2023
The Planet Money Thanksgiving feast explores the economic mystery of why turkey prices go down despite high demand. They discuss countercyclical pricing theories, home production's impact on the economy, and seating challenges. They also delve into matching theory for optimal seating arrangements and reveal the secret ingredient in cranberry sauce.
26:30
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Even though turkey demand is high during the holidays, the price of turkeys actually goes down due to countercyclical pricing, driven by competition among supermarkets.
- Home production, which is not included in GDP, represents a significant portion of the economy, and quantifying it provides a more comprehensive understanding of economic activity.
Deep dives
The Mystery of Thanksgiving Turkey Pricing
During the holiday season, the price of turkeys goes down, even though turkey demand is high. While supermarkets pay higher wholesale prices, consumers pay lower prices. This countercyclical pricing phenomenon is observed in other products as well, such as champagne, canned tuna, avocados, ice cream, and soup. One theory suggests that supermarkets use turkeys as loss leaders to attract customers. Another theory suggests that price-sensitive consumers drive down prices. However, a new theory states that the increase in the number of supermarkets selling turkeys during the holidays creates competition, leading to lower prices.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode