TY - JOUR
T1 - Price Points And Price Rigidity
AU - Levy, Daniel
AU - Lee, Dongwon
AU - Chen, Haipeng Allan
AU - Kauffman, Robert J.
AU - Bergen, Mark
PY - 2011/11
Y1 - 2011/11
N2 - We study the link between price points and price rigidity using two data sets: weekly scanner data and Internet data. We find that "9" is the most frequent ending for the penny, dime, dollar, and ten-dollar digits; the most common price changes are those that keep the price endings at "9"; 9-ending prices are less likely to change than non-9-ending prices; and the average size of price change is larger for 9-ending than non-9- ending prices. We conclude that 9-ending contributes to price rigidity from penny to dollar digits and across a wide range of product categories, retail formats, and retailers.
AB - We study the link between price points and price rigidity using two data sets: weekly scanner data and Internet data. We find that "9" is the most frequent ending for the penny, dime, dollar, and ten-dollar digits; the most common price changes are those that keep the price endings at "9"; 9-ending prices are less likely to change than non-9-ending prices; and the average size of price change is larger for 9-ending than non-9- ending prices. We conclude that 9-ending contributes to price rigidity from penny to dollar digits and across a wide range of product categories, retail formats, and retailers.
UR - http://www.scopus.com/inward/record.url?scp=84861212642&partnerID=8YFLogxK
U2 - 10.1162/REST_a_00178
DO - 10.1162/REST_a_00178
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AN - SCOPUS:84861212642
SN - 0034-6535
VL - 93
SP - 1417
EP - 1431
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 4
ER -