Preston McAfee: Why Are Prices So Bizarre? 5/3/2006 [cable/DSL] [broadband] [56k modem] 41 minutes In a Watson lecture, R. Preston McAfee, Johnson Professor of Business Economics and Management, discusses how companies determine prices. Why do grocery stores advertise sale prices on items such as milk, paper towels, and cola, even though the demand and cost of production didn't change. Why are turkeys cheapest just before Thanksgiving, when demand is highest? These paradoxes have a common resolution.