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Price theory is concerned with explaining economic activity in terms of the creation and transfer of value, which includes the trade of goods and services between difierent economic agents. A puzzling question addressed by price theory is, for example: why is water so cheap and diamonds
1 Introduction. Consumer retail prices exhibit a systematic combination of stickiness and exibility. The stickiness of prices|that they can remain unchanged for many months despite changing cost or demand circumstances|has long been considered a stylized fact in industrial organization.
Regular prices and sales. P. Heidhues. 2014, Theoretical Economics. See Full PDF Download PDF. See Full PDF Download PDF. Related Papers. European Journal of Economics and Economic Policies: Intervention. On the empirical regularities of Sraffa prices. 2020 •
Key Words: Price Rigidity, Sticky Prices, Regular Prices, Sale Prices, Filtered Prices, Reference Prices, Transaction Prices, Price Cuts, Pricing Format, Every Day Low Price (EDLP), Hi-Lo, Hybrid
5 lut 2014 · We establish that for any degree of consumer loss aversion, the monopolist's optimal price distribution consists of low and variable “sale” prices and a high and atomic “regular” price.
Then, a price is drawn from the distribution and the consumer decides whether to buy a single item of the good. Our main result establishes that the optimal price distribution consists of low and variable “sale” prices and a high and atomic “regular” price. The sale prices are chosen such that it is not.
16 sie 2023 · We combine these data with two ‘generated’ regular price series (filtered prices and reference prices) and study their rigidity. Regular price rigidity varies with store formats because different format stores treat sale prices differently, and consequently define regular prices differently.
