The seminar will be held in the Visitor Centre at 3:15 pm
Daniel Levy (Bar-Ilan University)
Abstract
We study the link between price points and price rigidity, using two datasets containing over 100 million observations. We find that 9 is the most frequently used price-ending for the penny, dime, dollar and ten-dollar digits, 9-ending prices are between 24%-73% less likely to change in comparison to non-9-ending prices, the average size of the price change is higher if it ends with 9 in comparison to non-9-ending prices, and the most common price changes are multiples of dimes, dollars, and ten-dollars. We conclude that price points might constitute a substantial source of retail price rigidity.