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Publishing Retail Prices in an Inflationary Context: Evidence from Argentina

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  • Horacio Larreguy
  • Robert Rodriguez
  • Laura Trucco

Abstract

When inflation is high, the dispersion of prices across sellers of the same good increases, both sellers and consumers lose sight of reference prices, and the degree of competition in the market weakens. The government of Argentina, a country with a current 35% annual inflation rate, has recently launched a program that provides consumers with store-level daily-updated information on prices for goods sold in major supermarkets across the entire nation. In this project, we use a unique dataset with this rich information on daily geolocated prices and exploit competition across stores, as determined by their proximity, in order to study the effect of providing this public good (the publication of retail prices) on price dispersion.

Suggested Citation

  • Horacio Larreguy & Robert Rodriguez & Laura Trucco, 2016. "Publishing Retail Prices in an Inflationary Context: Evidence from Argentina," Working Paper 468681, Harvard University OpenScholar.
  • Handle: RePEc:qsh:wpaper:468681
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    File URL: http://scholar.harvard.edu/lauratrucco/node/468681
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