Real Price Rigidities -Measuring Method and Application-

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Other Title
  • 価格の実質硬直性―計測手法と応用例―
  • カカク ノ ジッシツ コウチョクセイ ケイソク シュホウ ト オウヨウレイ

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Abstract

In this paper, we propose a new method to measure the price stickiness caused by strategic complementarities in price setting behavior using the autocorrelation coefficient. Then we apply this method to the online marketplace data. Since Bils and Klenow's (2004) seminal study, the frequency of price adjustment or the average price duration have been intensively examined to measure price stickiness. While the average price duration is 1.9 days, the autocorrelation coefficient shows 6 days' path-dependency for the sample data of a liquid crystal television. This means that retailers change prices three times to complete a price adjustment. The size of price changes is lowered by the strategic complementarities, which requires a longer price adjustment time. In previous papers, price stickiness might have been underestimated due to disregarding the path-dependency of price adjustment.

Journal

  • 経済研究

    経済研究 61 (1), 68-81, 2010-01-25

    岩波書店

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