Price Setting in a Leading Swiss Online Supermarket
Type
working paper
Date Issued
2011
Author(s)
Abstract
We study a newly released data set of scanner prices for food products in a large Swiss online supermarket.
We find that average prices change about every two months, but when we exclude temporary sales,
prices are extremely sticky, changing on average once every three years. Non-sale price behavior is
broadly consistent with menu cost models of sticky prices. When we focus specifically on the behavior
of sale prices, however, we find that the characteristics of price adjustment seems to be substantially
at odds with standard theory.
Download at the NBER Website
http://www.nber.org/papers/w17126.pdf
We find that average prices change about every two months, but when we exclude temporary sales,
prices are extremely sticky, changing on average once every three years. Non-sale price behavior is
broadly consistent with menu cost models of sticky prices. When we focus specifically on the behavior
of sale prices, however, we find that the characteristics of price adjustment seems to be substantially
at odds with standard theory.
Download at the NBER Website
http://www.nber.org/papers/w17126.pdf
Language
English
Keywords
online Supermarket
Scanner prices
Price Setting
HSG Classification
contribution to practical use / society
Refereed
No
Publisher
NBER National Bureau of Economic Research
Publisher place
Cambridge, MA
Subject(s)
Division(s)
Eprints ID
158219
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