Thanksgiving is a great US holiday during which people consume huge quantities of turkey, stuffing, cranberry sauce and pie. One of the stranger things about this holiday, however, is that a few days before everyone starts cooking, whole turkeys are suddenly discounted by supermarkets and grocery stores (see examples here or here).
And this happens every holiday season: the price falls just before Thanksgiving and stays low until Christmas. For example, November 2014’s price per pound for turkey was almost 20% lower than the price the previous March. Why does the price come down at the one time of the year when demand for the product spikes the most – before a holiday that’s literally dubbed “Turkey Day”? Continue reading