Showing 1 - 10 of 1,146
Panel conditioning occurs when participation in previous survey rounds affects how respondents answer questions in later rounds. I document panel conditioning effects in reported inflation expectations and other responses in the Federal Reserve Bank of New York Survey of Consumer Expectations....
Persistent link: https://www.econbiz.de/10012893382
How do macroeconomic expectations affect consumer decisions? We examine this question using a natural field experiment with 2,872 credit card customers from a large commercial bank. We conduct a survey to measure consumer expectations about future inflation and the nominal exchange rate and...
Persistent link: https://www.econbiz.de/10013246194
Information frictions play a central role in the formation of household inflation expectations, but there is no consensus about their origins. We address this question with novel evidence from survey experiments. We document two main findings. First, individuals in lower-inflation contexts have...
Persistent link: https://www.econbiz.de/10013006027
Inflation expectations play a vital role in determining inflation. Central bankers need to understand their intricacies and the information they can reveal. We look at the consistency of consumers' answers to questions on inflation expectations in the Bank of Canada's Canadian Survey of Consumer...
Persistent link: https://www.econbiz.de/10014251274
Manufacturers are increasingly producing and promoting sustainable products (i.e., products that have a positive social and/or environmental impact). However, relatively little is known about how product sustainability impacts consumers' preferences. We propose that sustainability may not always...
Persistent link: https://www.econbiz.de/10013069631
Do firms seek to make the market transparent,or do they confuse the consumers in their product perceptions? We show that the answer to this question depends decisively on preference heterogeneity. Contrary to the well-studied case of homogeneous goods, confusion is not necessarily an equilibrium...
Persistent link: https://www.econbiz.de/10012211024
We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty noticing higher prices if they are 9-ending, or noticing price-increases if the new prices are 9-ending, because 9-endings are used as a signal for low prices. Price setters...
Persistent link: https://www.econbiz.de/10012895367
We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty noticing higher prices if they are 9-ending, or noticing price-increases if the new prices are 9-ending, because 9-endings are used as a signal for low prices. Price setters...
Persistent link: https://www.econbiz.de/10011952104
There is evidence that 9-ending prices are more common and more rigid than other prices. We use data from three sources: a laboratory experiment, a field study, and a large US supermarket chain, to study the cognitive underpinning and the ensuing asymmetry in rigidity associated with 9-ending...
Persistent link: https://www.econbiz.de/10014039928
Promoting green product consumption is one important element in building a sustainable society. Yet green products are usually more costly. In times of high inflation, not only budget constraints but also the fear that prices will continue to rise might dampen green product consumption and,...
Persistent link: https://www.econbiz.de/10014501058