Tuesday, February 21, 2017

Publishing Retail Prices in an Inflationary Context: Evidence from Argentina

Horacio Larreguy; Robert Rodriguez and Laura Trucco have written up Publishing Retail Prices in an Inflationary Context: Evidence from Argentina.

ABSTRACT: When inflation is high, the dispersion of prices across sellers of the same good increases, and both sellers and consumers lose sight of reference prices. As a result, the degree of competition in the market weakens. The government of Argentina, a country with a current 35% annual inflation rate, has recently launched a program that provides consumers with store-level daily-updated information on prices for goods sold in major supermarkets across the entire nation. In this project, we use a unique dataset with this rich information on daily geolocated prices in order to study the effect of publishing prices on competition across stores, and its consequences on price dispersion.

https://lawprofessors.typepad.com/antitrustprof_blog/2017/02/publishing-retail-prices-in-an-inflationary-context-evidence-from-argentina.html

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