Do Prices Rise Faster Than They Fall? Evidence From Scanner Data

Rigid Prices: Evidence from U.S. Scanner Data

This paper uses over two years of weekly scanner data from two small US cities to characterize time and state dependence of grocers’ pricing decisions. In these data, the probability of a nominal adjustment declines with the time since the last price change even after controlling for heterogeneity across store-product cells and replacing sale prices with regular prices. We also detect state dep...

Why don't prices rise during periods of peak demand? Evidence from scanner data

Abstract We examine the retail prices and wholesale prices of a large supermarket chain in Chicago over seven and one-half years. We show that prices tend to fall during the seasonal demand peak for a product and that changes in retail margins account for most of those price changes. Moreover, we find that retails margins are reduced during peak periods of demand for specific goods even if thes...

Do Consumers Perceive Precise Prices to be Lower Than Round Prices? Evidence from Laboratory and Market Data

How Do House Prices Affect Consumption? Evidence from Micro Data

Housing is a major component of wealth. Since house prices fluctuate considerably over time, it is important to understand how these fluctuations affect households’ consumption decisions. Rising house prices may stimulate consumption by increasing households’ perceived wealth, or by relaxing borrowing constraints. This paper investigates the response of household consumption to house prices usi...

DotComMania:The Rise and Fall of Internet Stock Prices

This paper explores a model based on agents with heterogenous beliefs facing short sales restrictions, and its explanation for the rise, persistence, and eventual fall of Internet stock prices. First, we document substantial short sale restrictions for Internet stocks. Second, using data on Internet holdings and block trades, we show a link between heterogeneity and price e¡ects for Internet st...