Levy, Daniel
[Verfasser:in]
;
Snir, Avichai
[Sonstige Person, Familie und Körperschaft];
Gotler, Alex
[Sonstige Person, Familie und Körperschaft];
Chen, Haipeng (Allan)
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Journal of Monetary Economics, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 3, 2019 erstellt
Beschreibung:
We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty noticing higher prices if they are 9-ending, or noticing price-increases if the new prices are 9-ending, because 9-endings are used as a signal for low prices. Price setters respond strategically to the consumer-heuristic by setting 9-ending prices more often after price-increases than after price-decreases. 9-ending prices, therefore, remain 9-ending more often after price-increases than after price-decreases, leading to asymmetric rigidity: 9-ending prices are more rigid upward than downward. These findings hold for both transaction-prices and regular-prices, and for both inflation and no-inflation periods