helps reproduce the effects of trend inflation on price adjustment behavior. Our model of error-prone pricing in many ways …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 …

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 …

In this paper, we examine pricing behavior of retail firms in the Netherlands during 1998-2003 using a large database … with monthly price quotes of 49 articles, representing different product types. We have conducted this study in order to … completely passed on to consumers. Finally, there is some evidence indicating that pricing behavior of retail firms was different …

Using daily retail prices gathered through web scraping in Mexico, we analyze if price changes can be characterized by … time-dependent features, like the duration of the price spell, and/or by variables associated with the state of the economy …-dependency, on the one hand, estimates indicate that price spells exhibit greater risk of ending every seven days relative to other …

, become more urgent during holidays. As a result, the holiday-period opportunity cost of price adjustment may increase … dramatically for retail stores, which should lead to greater price rigidity during holidays. We test this prediction using weekly … retail scanner price data from a major Midwestern supermarket chain. We find that indeed, prices are more rigid during …

, become more urgent during holidays. As a result, the holiday-period opportunity cost of price adjustment may increase … dramatically for retail stores, which should lead to greater price rigidity during holidays. We test this prediction using weekly … retail scanner price data from a major Midwestern supermarket chain. We find that indeed, prices are more rigid during …

Most of the literature on retail fuel markets find high-frequency and asymmetric price cycles. This is typically … explained by the model of Edgeworth price cycles. A key element of this model is that prices fall to marginal costs during a …

Macroeconomists have traditionally ignored the behavior of temporary price markdowns ("sales") by retailers. Although … sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered … out. We challenge this view. First, using the 1996 - 2012 data set of the U.K. CPI monthly price quotes, we document a …

physical stores are becoming more flexible. What are the effects of online competition on the pricing behavior of traditional … pricing behavior of brick-and-mortar stores. By exploiting within-product variation across geographic markets, I show that a … higher online spending share is associated with higher price flexibility, smaller price changes, less prevalent sales, and …