Price rigidity and market power in German retailing

Price Rigidity and Market Power in German Retailing

Zentrum für internationale Entwicklungs- und Umweltforschung der Justus-Liebig-Universität Gießen Price Rigidity and Market Power in German Retailing

Price Points and Price Rigidity

We study the link between price points and price rigidity, using two datasets: weekly scanner data, and Internet data. We find that (i) “9” is the most frequently used price-ending for the penny, dime, dollar and ten-dollar digits, (ii) the most common price changes are those that keep the price endings at these “9” digits, (iii) the 9-ending prices are less likely to change in comparison to no...

Price Deception, Market Power and Consumer Policy

This paper presents a model in which a firm attempts to gain market power by pricing above the competitive market price and simply trying to persuade illinformed consumers not to search for other lower priced firms. Fictitious price comparisons, or false sale signs could be used in this way to deceptively and profitably deter consumer search. A simplified model shows how this mechanism could ex...

Market Structure and Price Adjustment in the Iranian Tea Market