Low-price guarantees and pricing behavior: evidence from hypermarkets in Korea

Hoe Sang Chung () and Min Kim ()
Additional contact information
Min Kim: University of Maryland

Economics Bulletin, 2016, vol. 36, issue 2, 1223-1229

Abstract: This study examines the relationship between a low-price guarantee and the price competition among three leading hypermarkets in Korea. Using retail price data for individual products, we find that after the guarantee, the price-matching store and its mentioned rival increase their prices while the non-mentioned competitor decreases its prices. The reason for such pricing patterns is discussed as well.

Keywords: Low-price guarantees; Cartel-facilitating devices; Signals of low prices (search for similar items in EconPapers)
JEL-codes: D4 L1 (search for similar items in EconPapers)
Date: 2016-06-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I2-P119.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00784

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().