The well documented phenomenon of countercyclical prices goes against intuition as basic economic theory predicts a price increase when there is an outward shift in the demand curve. In this research, we provide a consumer heterogeneity based explanation for why the prices of seasonal products...

Retailers determine the assortment for a mix of product categories in a particular space; e.g., the checkout aisle, end-of-aisle shelves, or freezer space. Within such a “target” space, shoppers are exposed to a selection of product categories that are not necessarily correlated in consumption...

We examine two questions: Does precision or roundedness of prices bias magnitude judgments? If so, do these biased judgments affect buyer behavior? In a laboratory pre-test, we find that people incorrectly judge precise prices (e.g., $325,425) to be lower than round prices of similar magnitudes...