Retail Pricing Format and Rigidity of Regular Prices

Sourav Ray (sray@mcmaster.ca), Avichai Snir (avichai.snir@gmail.com) and Daniel Levy (daniel.levy@biu.ac.il)
Additional contact information
Sourav Ray: DeGroote School of Business, McMaster University, Canada
Avichai Snir: Department of Banking & Finance, Netanya Academic College, Israel

Working Paper series from Rimini Centre for Economic Analysis

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 (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-com and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://rcea.org/RePEc/pdf/wp21-23.pdf

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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