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 …

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 …

model illustrates how alternating periods of price rigidity and flexibility can arise in such a setting, along with rapid … must be cognizant of convenience's role in effecting above-average price rigidity …

with above-average price rigidity …