Small price changes and menu costs
Saul Lach and
Additional contact information
Daniel Tsiddon: Tel Aviv University, Israel and CEPR, Postal: Tel Aviv University, Israel and CEPR
Managerial and Decision Economics, 2007, vol. 28, issue 7, pages 649-656
We find that while some individual price changes are indeed 'small', the average price change of different products within a store in any given month is not. Moreover, the smaller the price change of an individual product, the larger the average price change of the remaining products sold by the store. We argue that these findings are consistent with extensions of menu cost models of price-setting behavior to multiproduct firms when these firms have high average costs and low marginal costs of changing prices. Copyright © 2007 John Wiley & Sons, Ltd.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (24) Track citations by RSS feed
Downloads: (external link)
http://hdl.handle.net/10.1002/mde.1383 Link to full text; subscription required (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:wly:mgtdec:v:28:y:2007:i:7:p:649-656
Access Statistics for this article
Managerial and Decision Economics is currently edited by Antony Dnes
More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Series data maintained by Wiley-Blackwell Digital Licensing ().