One insight hinges on the lack of custmer traffic in a restaurant that might be atyracted on short notice by a given discount. The demand by pizza Hut customers, in other words, is not very price sensitive while the final preparation stages of Pizza Hut supply arr quite flexible and can be adjusted easily. In contrast, in the auto business, customer stdemand can be mulated on short notice by sharp price discounts, while the supply schedule at the endof the model year is very in flexible. Ford motor assembles and ships a number of cars in response to firm orders by their retail dealers and then insists on a no rrturns policy. Thereafter, in the face of deficient demand (below the planned rate of sale), Ford dealerships tend to slash their asking prices to clear excess inventory.