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Private Label Price Rigidity during Holiday Periods

  • Georg Müller

    (Strategic Pricing Group)

  • Mark Bergen

    (University of Minnesota)

  • Shantanu Dutta

    (University of Sourthern California)

  • Daniel Levy

    (Bar-Ilan University)

Using weekly retail transaction scanner price data from a large U.S supermarket chain, we find significantly higher retail price rigidity for private label products than for nationally branded products during the Christmas and Thanksgiving holiday periods relative to the rest of the year. The finding cannot be explained by changes in holiday period promotional practices because we find that private label promotions appear to diminish at least as much as national brands. The increased rigidity of private label products relative to national brands is only partially accounted for by increased rigidity of wholesale prices. After ruling out other potential explanations, we suggest that the higher private label price rigidity might be due to the increased emphasis on social consumption during holiday periods, raising the customers’ value of nationally branded products relative to the private labels.

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File URL: http://econwpa.repec.org/eps/mac/papers/0503/0503006.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0503006.

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Length: 12 pages
Date of creation: 10 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0503006
Note: Type of Document - pdf; pages: 12
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Daniel Levy & Georg Muller & Shantanu Dutta & Mark Bergen, 2004. "Holiday Price Rigidity and Cost of Price Adjustment," Macroeconomics 0402019, EconWPA, revised 10 Jun 2005.
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  5. repec:cup:cbooks:9780521017039 is not listed on IDEAS
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  20. Shantanu Dutta & Mark Bergen & Daniel Levy, 2002. "Price Flexibility in Channels of Distribution: Evidence from Scanner Data," Working Papers 2002-10, Bar-Ilan University, Department of Economics.
  21. Ball, Laurence & Romer, David, 2003. " Inflation and the Informativeness of Prices," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(2), pages 177-96, April.
  22. Caplin, Andrew & Leahy, John, 1991. "State-Dependent Pricing and the Dynamics of Money and Output," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 683-708, August.
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  24. Belk, Russell W, 1976. " It's the Thought That Counts: A Signed Digraph Analysis of Gift-Giving," Journal of Consumer Research, University of Chicago Press, vol. 3(3), pages 155-62, December.
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