Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/206844
Authors: 
Levy, Daniel
Lee, Dongwon
Chen, Haipeng (Allan)
Kauffman, Robert J.
Bergen, Mark
Year of Publication: 
2011
Citation: 
[Journal:] Review of Economics and Statistics [ISSN:] 1530-9142 [Volume:] 93 [Issue:] 4 [Pages:] 1417-1431
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.
Subjects: 
Price Point
9-Ending Price
Price Rigidity
JEL: 
E31
L16
D80
M21
M30
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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