The paper studies the effect of inflation on price behaviour using price data from Canadian daily newspapers. We test the Sheshinski and Weiss (1977) monopoly price adjustment model on a sample of monopolistic as well as oligopolistic newspapers, in contrast to earlier studies that used data from oligopolistic or monopolistically competitive markets. The results depend crucially on the assumptions about how often the firm collects information and revises its optimal pricing policy. With infrequent policy revisions, the results for monopoly newspapers support the model. The results for oligopoly newspapers are similar.
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Volume (Year): 38 (2006) Issue (Month): 3 (April) Pages: 615-633 Download reference. The following formats are available: HTML
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Levy, Daniel & Lee, Dongwon & Chen, Allan (Haipeng) & Kauffman, Robert & Bergen, Mark, 2007.
"Price Points and Price Rigidity,"
MPRA Paper
1472, University Library of Munich, Germany.
[Downloadable!]
Other versions:
Daniel Levy & Dongwon Lee & Haipeng Chen & Robert Kauffman & Mark Bergen, 2008.
"Price Points and Price Rigidity,"
Emory Economics
0809, Department of Economics, Emory University (Atlanta).
[Downloadable!]
Daniel Levy & Dongwon Lee & Haipeng Allan Chen & Robert J. Kauffman & Mark Bergen, 2007.
"Price Points and Price Rigidity,"
Working Paper Series
04-07, Rimini Centre for Economic Analysis, revised Jul 2007.
[Downloadable!]