Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159190
Authors: 
Bertarelli, Silvia
Year of Publication: 
1999
Series/Report no.: 
Quaderni - Working Paper DSE 349
Abstract: 
Abstract: Nominal price rigidities are analyzed from two different perspectives. From a qualitative point of view - as Kashyap (1995) - we look for coherent signs which confirm the presence of fixed costs of adjustment, and therefore the validity of state-dependent pricing rules. Our data concern a mail order Italian company and confirm that individual prices do not mimic the aggregate price index, as it was already claimed by Kashyap (1995) and Tsiddon (1993) for US and Israeli data. Second, we estimate by ordered probit models the probability to have nominal price adjustments (increase, rigidity or decrease) as a function of last period real price and rivals' price level. Price point strategies are also investigated. We observe a common performance for all brands' prices which supports a (S, s) rule hypothesis.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
92.78 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.