Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259349 
Year of Publication: 
2005
Series/Report no.: 
Working Paper No. 2005-01
Publisher: 
Bar-Ilan University, Department of Economics, Ramat-Gan
Abstract: 
Using weekly retail transaction scanner price data from a large U.S supermarket chain, we find significantly higher retail price rigidity for private label products than for nationally branded products during the Christmas and Thanksgiving holiday periods relative to the rest of the year. The finding cannot be explained by changes in holiday period promotional practices because we find that private label promotions appear to diminish at least as much as national brands. The increased rigidity of private label products relative to national brands is only partially accounted for by increased rigidity of wholesale prices. After ruling out other potential explanations, we suggest that the higher private label price rigidity might be due to the increased emphasis on social consumption during holiday periods, raising the customers’ value of nationally branded products relative to the private labels.
Subjects: 
Price Rigidity
Holidays
Private Label
National Brand
Social Consumption
JEL: 
E12
E31
L11
L20
L16
M21
M31
Document Type: 
Working Paper

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