Asymmetric price adjustment in the small
Haipeng (Allan) Chen (),
Daniel Levy (),
Sourav Ray and
Mark Bergen
Journal of Monetary Economics, 2008, vol. 55, issue 4, 728-737
Abstract:
Analyses of a large retail scanner price data set reveal a new and surprising regularity - small price increases occur more frequently than small price decreases for price changes of up to 10¢. That is, we find asymmetric price adjustment "in the small." Furthermore, it turns out that inflation offers only a partial explanation for the finding. Indeed, substantial proportion of the asymmetry remains unexplained, even after accounting for the inflation. For example, the asymmetry holds also after excluding periods of inflation from the data, and even for products whose price had not increased. The findings hold for different aggregate and disaggregate measures of inflation and also after allowing for lagged price adjustments.
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (78)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304-3932(08)00062-7
Full text for ScienceDirect subscribers only
Related works:
Journal Article: Asymmetric Price Adjustment in the Small (2008) 
Working Paper: Asymmetric price adjustment in the small (2008) 
Working Paper: Asymmetric Price Adjustment in the Small (2007) 
Working Paper: Asymmetric Price Adjustment in the Small (2006) 
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:eee:moneco:v:55:y:2008:i:4:p:728-737
Access Statistics for this article
Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser
More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().