Multi-product pricing: Theory and evidence from large retailers

Arbeitspapier

We study a unique dataset with comprehensive coverage of daily prices in large multi-product retailers in Israel. Retail stores synchronize price changes around occasional "peak" days when they reprice around 10% of their products. To assess aggregate implications of partial price synchronization, we develop a new model in which multi-product firms face economies of scope in price adjustment, and synchronization is endogenous. Synchronization of price changes attenuates the average price response to monetary shocks, but only high degrees of synchronization can substantially strengthen monetary non-neutrality. Our calibrated model generates as little monetary non-neutrality as in Golosov and Lucas (2007).

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Texto para discussão ; No. 687

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Theory ; Firm Behavior: Empirical Analysis ; Price Level; Inflation; Deflation ; Monetary Policy ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Thema: Ination ; Prices ; Multi-product pricing ; Synchronization of prices ; Menu cost ; Monetary non-neutrality

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bonomo, Marco Antonio ; Viana de Carvalho, Carlos ; Kryvtsov, Oleksiy ; Ribon, Sigal ; Rigato, Rodolfo
• Ereignis: Veröffentlichung
• (wer): Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
• (wo): Rio de Janeiro
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/249735
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ