be very difficult in practice. This preliminary draft applies a new methodology combining a simple price correlation test …. But more importantly, price reactions are also influenced by regional or local market conditions as the price setting of …

. Without actually estimating menu costs, we can infer their relevance for firms' price setting decisions from observed pricing … behavior around a currency changeover. At a currency changeover, firms have to reprint their price tags (menus) independently … of whether or not they want to change prices. And if this is costly, firms' price setting behavior is altered in the …