Price Points and Price Rigidity

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Review of Economics and Statistics ; ISSN: 1530-9142 ; Volume: 93 ; Year: 2011 ; Issue: 4 ; Pages: 1417-1431 ; Cambridge, MA: MIT Press

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Information, Knowledge, and Uncertainty: General ; Business Economics ; Marketing and Advertising: General
• Subject: Price Point ; 9-Ending Price ; Price Rigidity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Levy, Daniel ; Lee, Dongwon ; Chen, Haipeng (Allan) ; Kauffman, Robert J. ; Bergen, Mark
• Event: Veröffentlichung
• (who): MIT Press ; ZBW – Leibniz Information Centre for Economics
• (where): Cambridge, MA
• (when): 2011

Further information

• DOI: https://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00178
• Handle: http://hdl.handle.net/10419/206844
• Last update: 10.03.2025, 11:42 AM CET