Okay, what I am specifically trying to figure out is why would anyone lower prices during the highest sales period of the year? It seems the opposite would be more likely. People tend to feel that they MUST buy gifts, so why wouldn't retailers raise prices instead of lowering them? I can the practicality because lower prices would drive more sales. But is there an actual economic theory or reason for this? (OP: Holiday season is when retailers face particularly high demand. Why do they tend to lower prices at this time of the year?)