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Price Setting Behavior in Turkish Industries: Evidence From Survey Data

Author

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  • Saygin Sahinoz

    (Central Bank of Turkey)

  • Bedriye Saracoglu

    (Gazi University)

Abstract

This study investigates the price setting behavior of Turkish industries based on the results of a survey that was conducted by the Central Bank of the Republic of Turkey. The results show that under normal conditions, the majority of the firms follow time-dependent pricing rule but when significant events occur substantial fraction of them alter their behavior to state dependent reviewing. The median Turkish firm reviews its prices every month, but changes its prices four times a year. Price reviews and changes are affected by: the market share, price discrimination, customer type, firm size and the existence of regulated prices.

Suggested Citation

  • Saygin Sahinoz & Bedriye Saracoglu, 2008. "Price Setting Behavior in Turkish Industries: Evidence From Survey Data," Working Papers 2008/3, Turkish Economic Association.
  • Handle: RePEc:tek:wpaper:2008/3
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    References listed on IDEAS

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    Cited by:

    1. repec:mes:emfitr:v:52:y:2016:i:4:p:1029-1045 is not listed on IDEAS
    2. World Bank, 2013. "Republic of Turkey Reform for Competitiveness Technical Assistance : Fostering Open and Efficient Markets through Effective Competition Policies," World Bank Other Operational Studies 17010, The World Bank.
    3. Thorvardur Tjörvi Ólafsson & Ásgerdur Pétursdóttir & Karen Á. Vignisdóttir, 2011. "Price setting in turbulent times," Economics wp54, Department of Economics, Central bank of Iceland.
    4. Klenow, Peter J. & Malin, Benjamin A., 2010. "Microeconomic Evidence on Price-Setting," Handbook of Monetary Economics,in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 6, pages 231-284 Elsevier.
    5. Craigwell, Roland & Moore, Winston & Worrell, DeLisle, 2011. "Does Consumer Price Rigidity Exist in Barbados?," MPRA Paper 40928, University Library of Munich, Germany.
    6. Alvarez González, Luis Julián, 2008. "What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 2, pages 1-36.
    7. Martha Misas A. & Enrique López E. & Juan Carlos Parra A., 2013. "La formación de precios en las empresas colombianas: evidencia a partir de una encuesta directa," Investigación Conjunta-Joint Research,in: Laura Inés D'Amato & Enrique López Enciso & María Teresa Ramírez Giraldo (ed.), Dinámica inflacionaria, persistencia y formación de precios y salarios, edition 1, chapter 11, pages 273-348 Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    8. M. Utku Özmen & Orhun Sevinç, 2016. "Price Rigidity in Turkey: Evidence from Micro Data," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(4), pages 1029-1045, April.

    More about this item

    Keywords

    price-setting; price-rigidity; survey;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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