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Lack of local pricing response in national retail chains during large and localized demand peaks: Evidence from college move-ins and instant noodles

Xiao Dong

Economics Letters, 2022, vol. 213, issue C

Abstract: I utilize the predictable stockpiling of instant noodles during move-in week in college towns to examine how national retailers adjust prices in response to large and localized demand peaks. I find unit sales of instant noodles increase over 250% during college move-in week compared to sales in non-college town stores. Furthermore, I find national retail chains do not adjust prices locally in response and maintain uniform pricing.

Keywords: Localized demand peaks; Pricing response; Uniform pricing; Instant noodles; College move-in; Stockpiling (search for similar items in EconPapers)
JEL-codes: D12 D22 L11 L20 Q18 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:213:y:2022:i:c:s0165176522000611

DOI: 10.1016/j.econlet.2022.110384

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