Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279452 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 2023-04
Publisher: 
Bar-Ilan University, Department of Economics, Ramat-Gan
Abstract: 
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) that are located within a 1 km radius of each other. Our data contains both the actual transaction prices and actual regular prices as displayed on the store shelves. We combine these data with two "generated" regular price series (filtered prices and reference prices) and study their rigidity. Regular price rigidity varies with store formats because different format stores treat sale prices differently, and consequently define regular prices differently. Correspondingly, the meanings of price cuts and sale prices vary across store formats. To interpret the findings, we consider the store pricing format distribution across the US.
Subjects: 
Price Rigidity
Sticky Prices
Regular Prices
Sale Prices
Filtered Prices
Reference Prices
Temporary Price Changes
Transaction Prices
Price Cuts
Pricing Format
Pricing Strategy
Every-Day-Low-Price (EDLP)
Hi-Lo
Hybrid
JEL: 
E31
E52
D22
D40
L11
L16
M30
M31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.