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 …

dispersion of price changes in eight retail chains in Mexico, and compare them with price statistics stemming from brick and …) change more frequently than those observed on websites (online). However, given a price change, online prices tend to exhibit … larger price changes than their offline counterparts. In 2020, period affected by the pandemic, the above relationship across …

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 …

the frequency of price changes, has increased in the recent years of protracted stagnation and double-dip recession. The … Consumer Price Index. We find that both the percentage of prices adjusted monthly and the average size of the adjustment have … price adjustment mechanism: for manufactures, price cuts have become larger and more frequent, while increases are more …

higher online spending share is associated with higher price flexibility, smaller price changes, less prevalent sales, and … lower price dispersion within narrow categories of goods. I conjecture that online shopping makes it easier for consumers to …

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 …