The digital revolution of pricing enables retailers to change their prices more frequently than ever before. While the industry endorses this development, critics fear it could foster excessive price fluctuations. This paper studies price fluctuations in the context of brick-and-mortar retailing...

The nature of manufacturer's suggested retail prices (MSRPs) and whether their effect is pro- or anticompetitive is not well understood. We exploit a policy experiment in which a ban on MSRPs was imposed and then lifted a year later. We show that average prices increased by 2.1 percent as a...

9-ending prices are a dominant feature of many retail settings, which according to the existing literature, is because consumers perceive them as being relatively low. Are 9-ending prices really lower than comparable non 9-ending prices? Surprisingly, the empirical evidence on this question is...

Artificial Intelligence (AI) automates human decisions. Algorithmic pricing, a form of AI, sets prices by a computer. It is now common currency in ride-hailing, travel, drugs, gasoline, online goods---And great price variability characterizes all those settings. However, little is known about...

How often do online retailers change prices? Are there any differences in their price rigity? I collected and analysed more than 4 million daily prices of online grocery retailers from Czechia during the unprecedented period between January 2020 and April 2021. There are substantial differences...

This study shows that mergers’ price effects can vary seasonally. I document countercyclical price increases due to the Coors and Miller merger, which is consistent with models of coordinated pricing that predict lower equilibrium prices during high-demand states

We present an infinite horizon model that studies the competition between a relatively ineffective incumbent Credit Rating Agency (CRA) and a sequence of entrant CRAs that are potentially more effective but whose ability in appraising default risk is unproven at the time they enter the market....

This paper examines whether there is a natural barrier to entry in the credit rating industry. We consider an in nite horizon model in which each period, an original incumbent faces competition from an entrant randomly selected from a pool of ex ante identical potential entrants. The incumbent's...

The paper tests if the documented size effect in the Indian stock market is an anomaly with respect to market efficiency or an artifact with respect to data or methodology employed. The study employs two related datasets (one being held constant through the study period, the other being revised...

Supply chain interactions are a critical aspect of any firm's competitive strategy, and involve both input price negotiations and complementary investment decisions. This paper provides a model of strategic investment that predicts how customers match with suppliers, and how the way in which...