Retail Pricing Format and Rigidity of Regular Prices

Sourav Ray, Avichai Snir and Daniel Levy ()

MPRA Paper from University Library of Munich, Germany

Abstract: We study different notions of sale and regular prices, and their variability with store pricing-formats. We use data from three large stores with different pricing-formats (EDLP/Hi-Lo/Hybrid) that are located within 1-km radius. Importantly, the data contain both the actual transaction prices and the actual regular prices as displayed on the store shelves. We combine these data with two “generated” regular price series and study their rigidity. Regular-price rigidity varies with store-formats because different format stores define regular-prices differently. Correspondingly, the meaning of price-cuts varies across store-formats. To interpret the findings, we consider the store pricing format distribution across the US.

Keywords: Price Rigidity; Sticky Prices; Regular Prices; Sale Prices; Filtered Prices; Reference Prices; Transaction Prices; Price Cuts; Pricing Format; Every Day Low Price (EDLP); Hi-Lo; Hybrid (search for similar items in EconPapers)
JEL-codes: E31 E52 L1 L11 L16 L22 L81 M10 M21 M30 M31 (search for similar items in EconPapers)
Date: 2021-11-24
New Economics Papers: this item is included in nep-com, nep-ind and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Retail pricing format and rigidity of regular prices (2023)
Journal Article: Retail Pricing Format and Rigidity of Regular Prices (2023)
Working Paper: Retail Pricing Format and Rigidity of Regular Prices (2023)
Working Paper: Retail Pricing Format and Rigidity of Regular Prices (2023)
Working Paper: Retail pricing format and rigidity of regular prices (2023)
Working Paper: Retail Pricing Format and Rigidity of Regular Prices (2023)
Working Paper: Retail Pricing Format and Rigidity of Regular Prices (2021)
Working Paper: Retail Pricing Format and Rigidity of Regular Prices (2021)
Working Paper: Retail Pricing Format and Rigidity of Regular Prices (2021)
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