
doi: 10.2139/ssrn.2177569
A new method to the investigation of nominal prices is presented. Taking into account (a) the weight of a number’s digits, (b) the build-in characteristics of cardinal numbers in decimal notation, and (c) a probable misconception of decimal notation, the main features of nominal prices are demonstrated to be well predictable: the probability of market prices’ first digits obeys Benford’s Law due to (b); the length of prices, and the distribution of digits on the consecutive positions are determined by a price’s first digit, as well as by (a) and (c). A secondary data analysis from el Sehity, Hoelzl and Kirchler (2005) is undertaken on price data from 10 EMU-countries before and after the transition to the euro. Price structures of the former national currencies re-established in euro within one year according to (a), (b), and (c).
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