Although scanner price quotes and expenditures have great promise in improving the Consumer Price Index (CPI), their use has introduced new problems. One major problem confronting the Bureau of Labor Statistics (BLS) is the treatment of an item that experiences no purchases during a particular time period. Either a price can be explicitly imputed for this item or it can be implicitly imputed by...

This paper examines whether consumers necessarily benefit from tightening the price cap. We find that a tighter price cap always increases consumer welfare when demands are independent. Conversely, when demands are interdependent a tighter price cap may reduce consumer welfare.  2000 Elsevier Science S.A. All rights reserved.

Unlike frequent price promotions, a publicly announced permanent price cut is more likely to cause consumers to strategically shift their decision rules to adapt to the new pricing regime. Research is needed to (1) study whether permanent price cuts cause consumer preference to shift over time; (2) examine how the price cuts affect consumer choices in the short and long run; (3) examine the dif...

The main purpose of this paper is to examine the relationship between consumer price index (CPI) and producer price index (PPI) in Malaysia. This research considers monthly data of consumer price index and producer price index from January 1986 to April 2007. The Johansen cointegration method suggests that there is long-run equilibrium relationship between these two variables. Both Engle Grange...

This paper proposes a model in which identical sellers of a homogenous product compete in both prices and price frames (i.e., ways to present price information). We model price framing by assuming that firms’ frame choices affect the comparability of their price offers: consumers may fail to compare prices due to frame differentiation, and due to frame complexity. In the symmetric equilibrium t...

Ticket pricing in professional sports is transitioning from a cost-based to demand-based approach. It has been argued that consumer perceptions of fairness regarding demand-based ticket pricing could influence purchase decisions. Perceptions of unfair pricing practices can lead to dissatisfaction and negatively affect purchase behavior. However, familiarity with demand-based pricing strategies ...

This paper proposes a model in which identical sellers of a homogenous product compete in both prices and price frames (i.e., ways to present price information). We model price framing by assuming that firms’ frame choices affect the comparability of their price offers: consumers may fail to compare prices due to frame differentiation, and due to frame complexity. In the symmetric equilibrium t...

A working paper in the IN SEAD Working Paper Series is intended as a means whereby a fac ulty researcher's thoughts and findings ma y be communicated to interested readers. The paper should be considered preliminary in nature and may require revision. Printed a t INSEAD, Fontainebleau, France. Kindly do not reproduce or circulate without permission. We study the effect of anticipated regret on ...

This paper introduces price sorting into a consumer search model. Either ascending or descending price sorting can be applied before the sampling process. Consumers search sequentially for products with two types of qualities. We allow a fraction of consumers to have zero search costs, and all other consumers have the same positive search cost. Price dispersion exists in the unique symmetric eq...

I a name-your-own-price (NYOP) auction, consumers bid for a product or service. If a bid exceeds the concealed threshold price, the consumer receives the product at her bid price. This paper examines how to optimize the interactions between the NYOP retailer and service providers, while, at the same time, managing the bid acceptance rates in order to induce the desired consumer bidding behavior...