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 …

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 …

We propose a near-rational model of retail price adjustment consistent with microeconomic and macroeconomic evidence on … price dynamics. Our framework is based on the idea that avoiding errors in decision making is costly. Given our assumed cost … function for error avoidance, the timing of firms' price adjustments is determined by a weighted binary logit, and the prices …

We model retail price stickiness as the result of errors due to costly decision-making. Under our assumed cost function … for the precision of choice, the timing of price adjustments and the prices firms set are both logit random variables …. Errors in the prices firms set help explain micro "puzzles" relating to the sizes of price changes, the behavior of …

We empirically study the price adjustment process at multiproduct retail stores. We use a unique store level data set … during the price change process. We also discuss various aspects of the microeconomic environment in which the price … adjustment decisions are made, factors affecting the price adjustment decisions, and firm-level implications of price adjustment …

even when they offer little transaction convenience. We corroborate these findings with two large retail scanner price …

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 …

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

This paper compares sticky-price and sticky-information model under a more general staggering price-setting scheme … that, without strategic complementarity in the price-setting, two models generate similar inflation dynamics. The … distribution of price durations dominates the shape of impulse response in both models. Furthermore, with strategic complementarity …

the steady-state distribution of price adjustments in microdata; realism calls for firm-specific shocks. Computing a …