Economists are typically incredulous about sellouts — events such as rock concerts and sporting events, as well as in-demand products like Mr. Franklin’s barbecue. Their standard advice: “Raise prices — set the market clearing price where demand equals supply.” But in most cases, I believe this armchair advice can be detrimental to a business. Why? Because customers have long memories.

The New York Times recently detailed the prevalence of misleading retail reference prices — a term used to include list price, original price, manufacturers’ suggested retail price, etc. As reporter David Streitfeld noted, a check at various sellers for a Le Creuset skillet found reference prices ranging between $250 and $285 — but most retailers (including Le Creuset’s own site) actually sell the skillet for $200. Are you really getting a discount?