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Price-setting Behavior and Competition in Developing Countries: An Analysis of Retail Outlets in Lesotho

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  • Asha Sundaram
  • Lawrence Edwards
  • Mamello A. Nchake

Abstract

We study the relationship between price-setting behavior and the degree of competition in a setting where markets and information flows are relatively imperfect. Using a unique dataset that combines survey data on retail outlets in Lesotho, and detailed historical information on their product prices, we find a non-monotonic relationship between the frequency of price changes […]

Suggested Citation

  • Asha Sundaram & Lawrence Edwards & Mamello A. Nchake, 2015. "Price-setting Behavior and Competition in Developing Countries: An Analysis of Retail Outlets in Lesotho," Working Papers 567, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:567
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    References listed on IDEAS

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    More about this item

    Keywords

    Commodity prices; Competition; Emerging economies; Firms and Development; Household Survey;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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