In this paper we use sharp changes in gasoline prices to estimate the impact that short run changes in disposable income have on measures of consumer price sensitivity at the grocery store. We use weekly store level scanner data from 180 West Coast grocery stores for products (UPCs) in...

How do retail prices respond to manufacturer advertising? We use over two years of weekly data for 286 products across eleven product categories to show that retail prices change over and above what is expected after accounting for changes in wholesale prices. This suggests that retailers may...