Price Points and Price Rigidity

Daniel Levy (), Dongwon Lee (), Haipeng (Allan) Chen (), Robert Kauffman and Mark Bergen
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Dongwon Lee: Korea University [Seoul]
Robert Kauffman: SIS - Singapore Management University
Mark Bergen: Carlson School of Management - UMN - University of Minnesota [Twin Cities] - UMN - University of Minnesota System

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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.

Date: 2011-11
Note: View the original document on HAL open archive server: https://hal.science/hal-02387737
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Citations: View citations in EconPapers (64)

Published in Review of Economics and Statistics, 2011, 93 (4), pp.1417-1431. ⟨10.1162/REST_a_00178⟩

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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 (2010)
Working Paper: Price Points and Price Rigidity (2007)
Working Paper: Price Points and Price Rigidity (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02387737

DOI: 10.1162/REST_a_00178

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