The patterns of retail price variation. The case of milk products
We examine retail price variation across a range of milk products in Hungary. Our results show that majority of products have regular prices and the most deviations from that regular price are upward. We find significant differences across products in terms of price distributions. Sales are infrequent for majority of products and its role is limited in annual price variation. Results do not confirm that durable goods should have qualitatively different pricing pattern than less-durable goods. Although existing models of retail sales yield predictions consistent with some aspects of the retail pricing distributions, all of these models fail to explain other important aspects of retail pricing identified here.
|Date of creation:||29 Jun 2009|
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- Berck, Peter & Brown, Jennifer & Perloff, Jeffrey M. & Villas-Boas, Sofia Berto, 2008.
"Sales: Tests of theories on causality and timing,"
International Journal of Industrial Organization,
Elsevier, vol. 26(6), pages 1257-1273, November.
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- Berck, Peter & Brown, Jennifer & Perloff, Jeffrey M & Villas-Boas, Sofia B., 2007. "Sales: Tests of Theories on Causality and Timing," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2g56n1jk, Department of Agricultural & Resource Economics, UC Berkeley.
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