Publication Type

Journal Article

Publication Date

2011

Abstract

We study the link between price points and price rigidity using two data sets: weekly scanner data and Internet data. We find that ‘‘9’’ is the most frequent ending for the penny, dime, dollar, and ten-dollar digits; the most common price changes are those that keep the price endings at ‘‘9’’; 9-ending prices are less likely to change than non-9-ending prices; and the average size of price change is larger for 9-ending than non-9- ending prices. We conclude that 9-ending contributes to price rigidity from penny to dollar digits and across a wide range of product categories, retail formats, and retailers.

Discipline

Computer Sciences | Management Information Systems | Numerical Analysis and Scientific Computing

Research Areas

Information Systems and Management

Publication

Review of Economics and Statistics

Volume

93

Issue

4

First Page

1417

Last Page

1431

ISSN

0034-6535

Identifier

10.1162/REST_a_00178

Publisher

MIT Press

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://dx.doi.org/10.1162/REST_a_00178

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