Hackl, Franz; Kummer, Michael E.; Winter-Ebmer, Rudolf - 2010
disregard the rightmost digits of the price. This bounded rational behaviour leads to a Bertrand equilibrium with positive … markups. We use data from an Austrian price comparison site and find results highly compatible with Basu's theory. We can show … that price points - in particular prices ending in 9 - are prevalent and have significant impact on consumer demand …