Abstract
We study the link between price points and price rigidity using two data sets: weekly scanner data and Internet data. We find that "9" is the most frequent ending for the penny, dime, dollar, and ten-dollar digits; the most common price changes are those that keep the price endings at "9"; 9-ending prices are less likely to change than non-9-ending prices; and the average size of price change is larger for 9-ending than non-9- ending prices. We conclude that 9-ending contributes to price rigidity from penny to dollar digits and across a wide range of product categories, retail formats, and retailers.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1417-1431 |
| Number of pages | 15 |
| Journal | Review of Economics and Statistics |
| Volume | 93 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 2011 |