Round Numbers

Round Numbers and Security Returns

We document consistent return patterns related to round numbers. We examine returns following previous day closing prices that are just above or below round number benchmarks. We find, for one-digit, two-digit and three-digit levels, that returns following closing prices just above a round number benchmark are significantly higher than returns following prices just below. For example, returns f...

On Round Numbers: Pragmatic Aspects of Numerical Expressions

This paper describes and explains some regularities in the frequency of numbers in text. An analysis of number frequencies in text corpora in Dutch, English, German, and French confirms the expectation that frequency is highly dependent on two factors: magnitude and roundness. Roundness (defined as number frequency in an approximation context) proves to be related to three arithmetical properti...

Cheap Talk , Round Numbers , and the Economics of Negotiation ∗

Can sellers credibly signal their private information to reduce frictions in negotiations? Guided by a simple cheap-talk model, we posit that impatient sellers use round numbers to signal their willingness to cut prices in order to sell faster, and test its implications using millions of online bargaining interactions. Items listed at multiples of $100 receive offers that are 5%–8% lower but th...

“What goes round comes round”

Soon after the discovery of x-rays by Roentgen, radioactivity by Becquerel, and radium by the Curies, it was concluded that x-rays could not only be used for diagnostic purposes but also for therapy [1,2]. In the early years of radiation therapy, physicians had little understanding or knowledge of the physical nature and biological effects of radiation, the delivered doses were not certain, the...

Effects of moderate Reynolds numbers on subsonic round jets with highly disturbed nozzle-exit boundary layers