Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Thursday, July 10, 2014

Heterogeneous Price Dynamics, Synchronization, and Retail Chains: Evidence from Scanner Data

Andres Elberg (Universidad Diego Portales) discusses Heterogeneous Price Dynamics, Synchronization, and Retail Chains: Evidence from Scanner Data.

ABSTRACT: This paper uses a novel scanner data set to study price setting decisions of major retailers in an emerging market economy. I find evidence of heterogeneous pricing dynamics across retail chains. Heterogeneity is especially pronounced in the case of posted (as opposed to reference) prices. Furthermore, retail chains appear to set prices in a centralized fashion: most barcode-store level prices coincide with the intra-chain modal price. The relationship between reference and chain-wide prices reveals that deviations from reference prices cannot be solely attributed to shocks to local market conditions. In line with results on retail chain pricing, I find strong evidence of synchronization of price changes across stores within chains but weaker evidence of synchronization across retail chains. The evidence is also consistent with synchronization of price changes within retail stores.

http://lawprofessors.typepad.com/antitrustprof_blog/2014/07/heterogeneous-price-dynamics-synchronization-and-retail-chains-evidence-from-scanner-data-.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01a73dcf7be7970d

Listed below are links to weblogs that reference Heterogeneous Price Dynamics, Synchronization, and Retail Chains: Evidence from Scanner Data :

Comments

Post a comment