Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/229680 
Erscheinungsjahr: 
2020
Schriftenreihe/Nr.: 
Tinbergen Institute Discussion Paper No. TI 2020-060/VI
Verlag: 
Tinbergen Institute, Amsterdam and Rotterdam
Zusammenfassung: 
What explains apparent price rigidity over the business cycle? This paper shows that price fluctuations may be hidden in prices of add ons. Using 10 years of extended warranty data from a nationwide Canadian retailer, we show that extended warranty prices respond strongly to changes in local economic activity whereas prices of underlying durable goods do not. The procyclicality is driven by a shift in price setting behavior, where local stores use extended warranty discounts to make base durable demand less price elastic and, as a result, increase sales of durable goods. Discounts on extended warranties were especially sharp during the Great Recession.
Schlagwörter: 
Add-on pricing
business cycles
JEL: 
E30
L81
Dokumentart: 
Working Paper
Erscheint in der Sammlung:

Datei(en):
Datei
Größe
1.11 MB





Publikationen in EconStor sind urheberrechtlich geschützt.