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This introductory essay briefly summarizes the eleven empirical studies of price setting and price adjustment that are included in this special issue. The studies, which use data from several European countries, were conducted as part of the European Central Bank's Inflation Persistence Network.
Persistent link: https://www.econbiz.de/10010336066
market environment such as market structure, industry concentration, the nature of long-term relationships, contractual …
Persistent link: https://www.econbiz.de/10010336068
9-ending prices are a dominant feature of many retail settings, which according to the existing literature, is because consumers perceive them as being relatively low. Are 9-ending prices really lower than comparable non 9-ending prices? Surprisingly, the empirical evidence on this question is...
Persistent link: https://www.econbiz.de/10012016735
9-ending prices, which comprise between 40%–95% of retail prices, are popular because shoppers perceive them as being low. We study whether this belief is justified using scanner price-data with over 98-million observations from a large US grocery-chain. We find that 9-ending prices are higher...
Persistent link: https://www.econbiz.de/10012110157
Companies that know how to set the right prices for their products and services understand that pricing isn’t simply a matter of good tactics. By investing in specific areas of organizational capital, they’ve made it a strategic weapon that competitors can only envy.
Persistent link: https://www.econbiz.de/10012120363
We report that the price of a 6.5oz Coke was 5¢ from 1886 until 1959. Thus, we are documenting a nominal price rigidity that lasted more than 70 years! The case of Coca-Cola is particularly interesting because during the 70-year period there were substantial changes in the soft drink industry...
Persistent link: https://www.econbiz.de/10012120487
We empirically study the price adjustment process at multiproduct retail stores. We use a unique store level data set for five large supermarket and one drugstore chains in the USA, to document the exact process required to change prices. Our data set allows us to study this process in great...
Persistent link: https://www.econbiz.de/10012140548
The price system, the adjustment of prices to changes in market conditions, is the primary mechanism by which markets function and by which the three most basic questions get answered: what to produce, how much to produce and for whom to produce. To the behaviour of price and price system,...
Persistent link: https://www.econbiz.de/10012140549
The marketplace, along with its price system, is the single most important institution in a western‐style free enterprise economy. The ability of prices to adjust to changes in supply and demand conditions enables the market to function efficiently, and that ability lies behind the magical...
Persistent link: https://www.econbiz.de/10012140550
This introductory essay briefly summarizes the 11 empirical studies of price setting and price adjustment that are included in this special issue. The studies, which use data from several European countries, were conducted as part of the European Central Bank's Inflation Persistence Network.
Persistent link: https://www.econbiz.de/10012140552