Price Points and Price Rigidity
Copyright policy )Price Points and Price Rigidity
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.
- The University of Texas System United States
- Bar-Ilan University Israel
- University of Minnesota Morris United States
- Korea University Korea (Republic of)
- University of Minnesota System United States
Preismanagement, Post-Keynesian, Price Point, M21, E31 - Price Level, Price Point; 9-Ending Price; Price Rigidity; Rational Inattention; E-Commerce, Deflation, Management Information Systems, M30 - General, 9-Ending Price, Preisrigidität, M21 - Business Economics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Chicago (Ill.), D80 - General, E31, Anpassungskosten, Computer Sciences, ddc:330, M30, Industrial Price Indices, Price Point, 9-Ending Price, Price Rigidity, E12 - Keynes, L16, Inflation, Keynesian, Price Rigidity, D80, [SHS] Humanities and Social Sciences, Numerical Analysis and Scientific Computing, L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change, jel: jel:D80, jel: jel:M21, jel: jel:E31, jel: jel:E12, jel: jel:M30, jel: jel:L16
Preismanagement, Post-Keynesian, Price Point, M21, E31 - Price Level, Price Point; 9-Ending Price; Price Rigidity; Rational Inattention; E-Commerce, Deflation, Management Information Systems, M30 - General, 9-Ending Price, Preisrigidität, M21 - Business Economics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Chicago (Ill.), D80 - General, E31, Anpassungskosten, Computer Sciences, ddc:330, M30, Industrial Price Indices, Price Point, 9-Ending Price, Price Rigidity, E12 - Keynes, L16, Inflation, Keynesian, Price Rigidity, D80, [SHS] Humanities and Social Sciences, Numerical Analysis and Scientific Computing, L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change, jel: jel:D80, jel: jel:M21, jel: jel:E31, jel: jel:E12, jel: jel:M30, jel: jel:L16
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