EconPapers    
Economics at your fingertips  
 

Price Variation Antagonism and Firm Pricing Policies

Pascal Courty () and Mario Pagliero

No ECO2006/27, Economics Working Papers from European University Institute

Abstract: Survey evidence suggests firms do not use pricing policies that vary prices in response to demand changes because they fear that such practices would antagonize consumers. We investigate this hypothesis using a dataset from a firm that has experimented with different pricing schemes. Each scheme is characterized by how much prices respond to demand variations. We find evidence that is consistent with the hypothesis that consumers take advantage of the opportunities offered by price changes and inconsistent with the hypothesis that consumers are antagonized by price changes caused by demand shocks.

Keywords: Consumer demand; responsive pricing; fairness; price rigidit (search for similar items in EconPapers)
JEL-codes: D01 D12 L86 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic and nep-mkt
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://cadmus.iue.it/dspace/bitstream/1814/6229/1/ECO2006-27.pdf main text

Related works:
Journal Article: Price variation antagonism and firm pricing policies (2010) Downloads
Working Paper: Price Variation Antagonism and Firm Pricing Policies (2008) Downloads
Working Paper: Price Variation Antagonism and Firm Pricing Policies (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eui:euiwps:eco2006/27

Access Statistics for this paper

More papers in Economics Working Papers from European University Institute
Address: Badia Fiesolana, Via dei Roccettini, 9, 50016 San Domenico di Fiesole (FI) Italy
Contact information at EDIRC.
Series data maintained by Marcia Gastaldo ().

 
Page updated 2014-04-23
Handle: RePEc:eui:euiwps:eco2006/27