Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311862 
Year of Publication: 
2025
Citation: 
[Journal:] Economics Letters [ISSN:] 1873-7374 [Issue:] Articles in press [Article No.:] 112245 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2025 [Pages:] 1-12
Publisher: 
Elsevier, Amsterdam
Abstract: 
We test the predictions of the sticky information model using a survey dataset by comparing shoppers’ accuracy in recalling the prices of regulated and comparable unregulated products. Because regulated product prices are capped, they are sold more than comparable unregulated products, while their prices change less frequently and vary less across stores and between brands, than the prices of comparable unregulated products. Therefore, shoppers would be expected to recall the regulated product prices more accurately. However, we find that shoppers are better at recalling the prices of unregulated products, in line with the sticky information model which predicts that shoppers will be more attentive to prices that change more frequently.
Subjects: 
Sticky Information
Price Cap
Price Regulation
Price Control
Price Adjustment
Sticky Prices
Rigid Prices
Costs and Benefits of Information
Asymmetric Information
JEL: 
D12
D83
D91
E31
K20
L11
L16
L50
Published Version’s DOI: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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