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Open AccessJournal ArticleDOI

Shattering the myth of costless price changes

Mark Bergen, +4 more
- 01 Dec 2003 - 
- Vol. 21, Iss: 6, pp 663-669
TLDR
In this paper, the authors present strategic recommendations for improving the way in which prices are changed within organizations, by broadening the definition of the costs of changing price and then presenting strategic recommendations.
About: 
This article is published in European Management Journal.The article was published on 2003-12-01 and is currently open access. It has received 53 citations till now. The article focuses on the topics: Mid price & Reservation price.

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Citations
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Journal ArticleDOI

Price Setting in the Euro Area : Some Stylised Facts from Individual Producer Price Data

Philip Vermeulen, +6 more
- 01 Feb 2007 - 
TL;DR: In this paper, the authors studied the producer price setting in 6 countries of the euro area: Germany, France, Italy, Spain, Belgium and Portugal, and found that prices change very often in the energy sector, less often in food and intermediate goods and least often in non-durable nonfood and durable goods.

Price setting in the euro area: Some stylized facts from Individual Consumer Price Data. NBB Working Paper Nr.74, September 2005

Emmanuel Dhyne, +9 more
TL;DR: In this paper, the authors document patterns of price setting at the retail level in the euro area, summarized in six stylized facts: the average euro area monthly frequency of price adjustment is 15 p.c.
Posted Content

Macro Price setting in the euro area: Some stylised facts from Individual Producer Price

Daniel A. Dias, +6 more
- 01 Jan 2007 - 
TL;DR: In this paper, the authors studied the producer price setting in 6 countries of the euro area: Germany, France, Italy, Spain, Belgium and Portugal, and found that prices change very often in the energy sector, less often in food and intermediate goods and least often in non-durable non-food and durable goods.
Journal ArticleDOI

Price setting in the euro area: some stylised facts from individual producer price data

Philip Vermeulen, +6 more
- 01 Dec 2012 - 
TL;DR: In this article, the authors present a set of stylized facts on the frequency and size of price changes along with an econometric investigation of their main determinants, including seasonality, outlet type, indirect taxation, use of attractive prices as well as aggregate or product-specific inflation.
Journal ArticleDOI

Mapping the Ethicality of Algorithmic Pricing: A Review of Dynamic and Personalized Pricing

Peter Seele, +3 more
- 01 May 2021 - 
TL;DR: In this paper, the authors provide an overview and discussion of the ethical challenges germane to algorithmic pricing, and perform a systematic interpretative review of 315 related articles on dynamic and personalized pricing as well as pricing algorithms.
References
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Fairness as a Constraint on Profit Seeking: Entitlements in the Market

Daniel Kahneman, +2 more
- 01 Jan 1986 - 
TL;DR: In customer or labor markets, it is acceptable for a firm to raise prices (or cut wages) when profits are threatened, and to maintain prices when costs diminish as mentioned in this paper, and several market anomalies are explained by assuming that these standards of fairness influence the behavior of firms.
Book

Sticky Prices in the United States

Julio J. Rotemberg
TL;DR: In this paper, the authors present a theory that justifies price stickiness, namely, that firms, fearing to upset their customers, attribute a cost to price changes, and present a rational expectations equilibrium of an economy with many such firms, estimated with postwar U.S. data, and tested against alternative hypotheses.
Journal ArticleDOI

The Magnitude of Menu Costs: Direct Evidence from Large U. S. Supermarket Chains

Daniel Levy, +3 more
- 01 Aug 1997 - 
TL;DR: In this article, the authors use store-level data to document the exact process of changing prices and to directly measure menu costs at five multistore supermarket chains and show that changing prices in these establishments is a complex process, requiring dozens of steps and a nontrivial amount of resources.
Journal ArticleDOI

Managerial and Customer Costs of Price Adjustment: Direct Evidence from Industrial Markets

Mark Zbaracki, +4 more
- 01 Jan 2004 - 
TL;DR: In this article, the authors study the price adjustment practices and provide quantita- tive measurement of the managerial and customer costs of price adjust- ment using data from a large U.S. industrial manufacturer and its custom- ers.
Journal ArticleDOI

Pricing process as a capability: a resource‐based perspective

Suchandra Dutta, +2 more
- 01 Jul 2003 - 
TL;DR: In this article, the authors argue that pricing is a capability and that a firm must invest in resources and routines to develop the ability to set the right prices for what it sells to capture the potential rents associated with that value.
Related Papers (5)

Managerial and Customer Costs of Price Adjustment: Direct Evidence from Industrial Markets

Mark Zbaracki, +4 more
- 01 Jan 2004 - 

The Magnitude of Menu Costs: Direct Evidence from Large U. S. Supermarket Chains

Daniel Levy, +3 more
- 01 Aug 1997 - 

Asking About Prices: A New Approach to Understanding Price Stickiness

Alan S. Blinder

The Rigidity of Prices

Dennis W. Carlton
- 01 Jan 1986 - 

Sticky Prices: New Evidence from Retail Catalogs

Anil K. Kashyap
- 01 Feb 1995 - 
Frequently Asked Questions (1)
Q1. What contributions have the authors mentioned in the paper "Shattering the myth of costless price changes" ?

In this paper the authors argue that pricing is all about price changes, and that the costs of price changes are often simultaneously subtle and substantial. The authors discuss a framework to deal with the dynamics of changing prices. This framework incorporates customer interpretations of price changes, an awareness of the organizational costs of price changes, investments in future pricing processes, and an understanding of the role that supply chains play in price change strategy.