Macroeconomic models often generate nominal price rigidity via menu costs. This paper provides empirical evidence that … empirical facts: (1) price points, embodied in nine-ending prices, account for more than 60 percent of prices; (2) at the … nests roles for menu costs and price points and estimate model variants via simulated method of moments. Excluding the two …

We analyze price dispersion using panel data from a large price comparison site. We use past pricing behavior to … greater price adjustment costs result in greater price dispersion. Although the impact of price adjustment costs on price … dispersion became weaker over time, the causal effect of price adjustment costs on price dispersion is still present at the end …

We analyze price dispersion using panel data from a large price comparison site. We use past pricing behavior to … greater price adjustment costs result in greater price dispersion. Although the impact of price adjustment costs on price … dispersion became weaker over time, the causal effect of price adjustment costs on price dispersion is still present at the end …

when they end with 9, or price increases when the new prices end with 9, in comparison to other endings. The consumers …' misperception seems to be caused by their use of 9-endings as a signal for low prices, which interferes with price information … processing. The supermarket data suggest that retail price setters respond strategically to the consumer misperception by setting …

Recent works suggest that convenient prices that match monetary denominations exhibit above-average price rigidity and … prices. This finding confirms that price rigidity can be in part explained by the use of cash to pay convenient prices …

In this paper, we show that a simple model of smoothly state-dependent pricing generates a distribution of price … assumption: price adjustment is more likely when it is more valuable. The constant probability model (Calvo 1983) and the fixed … dependence. The fixed menu cost model is inconsistent with the evidence both because it never generates small price adjustments …

Electronic shelf label (ESL) is an emerging price display technology around the world. While these new technologies … in material, labor and managerial costs. The presumed benefits of ESL, for example, tend to be focused around lower price … adjustment costs (PAC), also known as menu costs. However, ESL not only can save PAC but may also enable the retailer to price …

We study the price rigidity of regular and sale prices, and how it is affected by pricing formats (i.e., pricing … strategies). We use data from three large Canadian stores with different pricing formats (Every-Day-Low-Price, Hi-Lo, and Hybrid … regular prices as displayed on the store shelves. We combine these data with two “generated” regular price series (filtered …

Prices that end with 9, also known as psychological price points, are common, comprising about 70% of the retail prices … price ending that has the same effects as 9-endings. In January 2014, the Israeli government passed a new regulation …. Thus, 90-ending prices became the new psychological price points, partially eliminating the regulation's intended effect. …