Journal article
PRICE POINTS AND PRICE RIGIDITY
The review of economics and statistics, Vol.93(4), pp.1417-1431
11/01/2011
DOI: 10.1162/REST_a_00178
Abstract
We study the link between price points and price rigidity using two data sets: weekly scanner data and Internet data. We find that "9'' is the most frequent ending for the penny, dime, dollar, and ten-dollar digits; the most common price changes are those that keep the price endings at "9''; 9-ending prices are less likely to change than non-9-ending prices; and the average size of price change is larger for 9-ending than non-9-ending prices. We conclude that 9-ending contributes to price rigidity from penny to dollar digits and across a wide range of product categories, retail formats, and retailers.
Details
- Title: Subtitle
- PRICE POINTS AND PRICE RIGIDITY
- Creators
- Daniel Levy - Bar-Ilan UniversityDongwon Lee - University of SeoulHaipeng (Allan) Chen - Texas A&M Univ, College Stn, TX 77843 USARobert J. Kauffman - Singapore Management UniversityMark Bergen - University of Minnesota System
- Resource Type
- Journal article
- Publication Details
- The review of economics and statistics, Vol.93(4), pp.1417-1431
- DOI
- 10.1162/REST_a_00178
- ISSN
- 0034-6535
- eISSN
- 1530-9142
- Publisher
- Mit Press
- Number of pages
- 15
- Language
- English
- Date published
- 11/01/2011
- Academic Unit
- Marketing
- Record Identifier
- 9984618523202771
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