Price Points and Price Rigidity

Daniel Levy (), Dongwon Lee, Haipeng (Allan) Chen (), Robert Kauffman and Mark Bergen
Additional contact information
Dongwon Lee: Korea University
Robert Kauffman: Arizona State University
Mark Bergen: University of Minnesota

No 2010-21, Working Papers from Bar-Ilan University, Department of Economics

Abstract: We study the link between price points and price rigidity, using two datasets: 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: 2010-12
New Economics Papers: this item is included in nep-cba, nep-com, nep-hme and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://www2.biu.ac.il/soc/ec/wp/2010-21.pdf Working paper (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www2.biu.ac.il:443 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Journal Article: Price Points and Price Rigidity (2011)
Journal Article: Price Points and Price Rigidity (2011)
Working Paper: Price Points and Price Rigidity (2011)
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:biu:wpaper:2010-21

Access Statistics for this paper

More papers in Working Papers from Bar-Ilan University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Department of Economics ().