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Memory for prices and the euro cash changeover: An analysis for cinema prices in Italy

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Author Info
Vincenzo Cestari () (Università Lumsa and CNR)
Paolo Del Giovane () (Bank of Italy)
Clelia Rossi-Arnaud () (Università di Roma - La Sapienza)
Abstract

The question addressed by this study is whether consumers remember past prices correctly. We test Italian citizensÂ’ memory for cinema prices with questionnaires distributed to moviegoers. The analysis concentrates on the memory of pre-euro prices, but the recall for a more recent period is also investigated. The results show that only a small percentage of respondents recalled the correct price, and that the average prices recalled were much lower than the actual pre-euro prices and dated back to years before the changeover. Price recall is less accurate for the respondents who perceive higher and more persistent inflation; it is also worse for the older respondents and for the less frequent movie-goers.

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File URL: http://www.bancaditalia.it/pubblicazioni/econo/temidi/td07/td619_07/td619/en_tema_619.pdf
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Publisher Info
Paper provided by Bank of Italy, Economic Research Department in its series Temi di discussione (Economic working papers) with number 619.

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Date of creation: Feb 2007
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Handle: RePEc:bdi:wptemi:td_619_07

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Related research
Keywords: prices; memory; perceptions; euro;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D8 - Microeconomics - - Information, Knowledge, and Uncertainty
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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  1. Thomas A. Eife & Stephan Meier, 2007. "Costly Inflation Misperceptions," Working Papers 0455, University of Heidelberg, Department of Economics, revised Oct 2007. [Downloadable!]
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This page was last updated on 2009-11-11.


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