Staggering and Synchronisation of Prices in a Low Inflation Environment: Evidence from German Food Stores
AbstractOnly a few studies have analysed staggering and synchronisation in pricing behaviour of multi-product firms. These studies used low-frequency data in an environment of high rates of inflation. This paper investigates staggering and synchronisation of weekly prices for ten food products in 131 grocery stores in Germany over the period from May 1995 to December 2000 (296 weeks). Different forms of staggering and synchronisation (across-store synchronisation, within type-of-store synchronisation, within retailer synchronisation or across-product synchronisation) have been analysed. None of these forms of synchronisation is supported empirically however. In contrast, perfect staggering can only be rejected in very few cases indicating that fixed or firm specific menu costs are not major causes for price stickiness. --
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Bibliographic InfoPaper provided by Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies in its series FE Working Papers with number 0203.
Date of creation: 2002
Date of revision:
Food Retail Market; Germany; Pricing Behaviour; Menu Costs;
Find related papers by JEL classification:
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
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