Price Points and Price Rigidity

Daniel Levy (), Dongwon Lee, Haipeng (Allan) Chen (), Robert J. Kauffman and Mark Bergen

EconStor Open Access Articles and Book Chapters, 2011, vol. 93, issue 4, 1417-1431

Abstract: 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.

Keywords: Price Point; 9-Ending Price; Price Rigidity (search for similar items in EconPapers)
JEL-codes: D80 E31 L16 M21 M30 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/206844/1/R ... oming%20-%202011.pdf (application/pdf)

Related works:
Journal Article: Price Points and Price Rigidity (2011)
Working Paper: Price Points and Price Rigidity (2011)
Working Paper: Price Points and Price Rigidity (2010)
Working Paper: Price Points and Price Rigidity (2007)
Working Paper: Price Points and Price Rigidity (2007)
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:zbw:espost:206844

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().