Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308108 
Year of Publication: 
2025
Publisher: 
SSRN, Rochester, NY
Abstract: 
We test the predictions of the sticky information model using a survey dataset by comparing the shoppers’ accuracy in recalling the prices of regulated and comparable unregulated products. Regulated product prices change less frequently, vary less across stores and between brands, and are sold more than comparable but unregulated product prices. Therefore, shoppers would be expected to recall the regulated product prices more accurately. However, we find that shoppers are better at recalling the prices of unregulated products, in line with the sticky information model which predicts that shoppers will be more attentive to prices that change more frequently.
Subjects: 
Sticky Information
Cost and Benefit of Information
Information Gathering
Information Processing
Price Cap
Price Regulation
Price Controls
Price Adjustment
Sticky Prices
Rigid Prices
Price Stickiness
Price Rigidity
JEL: 
D12
D83
D91
E31
K20
L11
L16
L50
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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