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Retail price dynamics and retailer heterogeneity: UK evidence

Author

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  • Lloyd, T.A.
  • McCorriston, S.
  • Morgan, C.W.
  • Poen, E.
  • Zgovu, E.

Abstract

We examine retailer heterogeneity in price adjustment in UK supermarkets. Considerable variation in the price change frequency of identically bar-coded products among retail chains is found. Decomposition analysis suggests that price adjustment is evenly split between sales and reference prices with substantive variation across retailers.

Suggested Citation

  • Lloyd, T.A. & McCorriston, S. & Morgan, C.W. & Poen, E. & Zgovu, E., 2014. "Retail price dynamics and retailer heterogeneity: UK evidence," Economics Letters, Elsevier, vol. 124(3), pages 434-438.
  • Handle: RePEc:eee:ecolet:v:124:y:2014:i:3:p:434-438
    DOI: 10.1016/j.econlet.2014.06.032
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    References listed on IDEAS

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    1. Daniel Hosken & David Reiffen, 2004. "Patterns of Retail Price Variation," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 128-146, Spring.
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    4. Emi Nakamura & Jón Steinsson, 2010. "Monetary Non-neutrality in a Multisector Menu Cost Model," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 961-1013.
    5. Emi Nakamura & Jón Steinsson, 2013. "Price Rigidity: Microeconomic Evidence and Macroeconomic Implications," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 133-163, May.
    6. Laurent Baudry & Hervé Le Bihan & Patrick Sevestre & Sylvie Tarrieu, 2007. "What do Thirteen Million Price Records have to Say about Consumer Price Rigidity?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(2), pages 139-183, April.
    7. Gee Hee Hong & Nicholas Li, 2013. "Market Structure and Cost Pass-Through in Retail," Staff Working Papers 13-5, Bank of Canada.
    8. Emi Nakamura, 2008. "Pass-Through in Retail and Wholesale," American Economic Review, American Economic Association, vol. 98(2), pages 430-437, May.
    9. Bartosz Mackowiak & Frank Smets, 2008. "On implications of micro price data for macro models," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 53.
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    12. Gagnon, Etienne & Lopez-Salido, J. David, 2014. "Small Price Responses to Large Demand Shocks," Finance and Economics Discussion Series 2014-18, Board of Governors of the Federal Reserve System (U.S.).
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    Citations

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    Cited by:

    1. Durevall, Dick, 2017. "Cost Pass-Through in the Swedish Coffee Market," Working Papers in Economics 697, University of Gothenburg, Department of Economics.
    2. Paul W. Dobson & Sang-Hyun Kim & Hao Lan, 2016. "Identifying Price-Leadership Structures in Oligopoly," Working papers 2016rwp-99, Yonsei University, Yonsei Economics Research Institute.
    3. repec:bla:jageco:v:68:y:2017:i:3:p:881-900 is not listed on IDEAS
    4. Durevall, Dick, 2017. "Cost Pass-Through in the Swedish Coffee Market," HUI Working Papers 120, HUI Research.
    5. repec:bla:jageco:v:68:y:2017:i:1:p:3-21 is not listed on IDEAS

    More about this item

    Keywords

    Scanner data; Retail price adjustment; Reference prices; Sales;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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