We analyze the behaviour of prices using a large disaggregated data set for Poland during transition from a planned to a market economy. The size of price changes and the frequency of adjustment both fall as the inflation rate declines. Price setters follow a mixture of state- and...

We study the behavior of price dispersion in Poland following the big-bang transition to a market economy in 1990 using a large, disaggregated data set. Intra- and intermarket dispersions fall rapidly in the early stages of transition. This is not fully explained by changes in inflation or in...