Sticky Information and Price Controls: Evidence from a Natural Experiment
Doron Sayag,
Avichai Snir and
Daniel Levy ()
MPRA Paper from University Library of Munich, Germany
Abstract:
We test the predictions of the sticky information model using a survey dataset by comparing the shoppers’ accuracy in recalling the prices of regulated and comparable unregulated products. Regulated product prices change less frequently, vary less across stores and between brands, and are sold more than comparable but unregulated product prices. Therefore, shoppers would be expected to recall the regulated product prices more accurately. However, we find that shoppers are better at recalling the prices of unregulated products, in line with the sticky information model which predicts that shoppers will be more attentive to prices that change more frequently.
Keywords: Sticky information; cost and benefit of information; information gathering; information processing; price cap; price regulation; price controls; price adjustment; sticky prices; rigid prices (search for similar items in EconPapers)
JEL-codes: D12 D83 D91 E31 K20 L11 L16 L50 (search for similar items in EconPapers)
Date: 2025-01-03
New Economics Papers: this item is included in nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/123267/1/MPRA_paper_123267.pdf original version (application/pdf)
Related works:
Journal Article: Sticky information and price controls: Evidence from a natural experiment (2025) 
Journal Article: Sticky information and price controls: Evidence from a natural experiment (2025) 
Working Paper: Sticky information and price controls: Evidence from a natural experiment (2025) 
Working Paper: Sticky information and price controls: Evidence from a natural experiment (2025) 
Working Paper: Sticky information and price controls: Evidence from a natural experiment (2025) 
Working Paper: Sticky Information and Price Controls: Evidence from a Natural Experiment (2025) 
Working Paper: Sticky Information and Price Controls: Evidence from a Natural Experiment (2025) 
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:pra:mprapa:123267
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().