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Unpublished Paper
Price setting in a leading Swiss online supermarket
(2011)
  • Martin Berka, Victoria University of Wellington
  • Michael B Devereux, University of British Columbia
  • Thomas Rudolph
Abstract

We study a newly released data set of scanner prices for food products in a large Swiss online supermarket. We find that average prices change about every two months, but when we exclude temporary sales, prices are extremely sticky, changing on average once every three years. Non-sale price behavior is broadly consistent with menu cost models of sticky prices. When we focus specifically on the behavior of sale prices, however, we find that the characteristics of price adjustment seems to be substantially at odds with standard theory.

Disciplines
Publication Date
2011
Citation Information
Martin Berka, Michael B Devereux and Thomas Rudolph. "Price setting in a leading Swiss online supermarket" (2011)
Available at: http://works.bepress.com/martin_berka/8/