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Numerical Analysis and Scientific Computing
Research Collection School Of Computing and Information Systems
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Price Points And Price Rigidity, Daniel Levy, Dongwon Lee, Haipeng (Allen) Lee, Robert J. Kauffman, Mark Bergen
Price Points And Price Rigidity, Daniel Levy, Dongwon Lee, Haipeng (Allen) Lee, Robert J. Kauffman, Mark Bergen
Research Collection School Of Computing and Information Systems
We study the link between price points and price rigidity using two data sets: weekly scanner data and Internet data. We find that ‘‘9’’ is the most frequent ending for the penny, dime, dollar, and ten-dollar digits; the most common price changes are those that keep the price endings at ‘‘9’’; 9-ending prices are less likely to change than non-9-ending prices; and the average size of price change is larger for 9-ending than non-9- ending prices. We conclude that 9-ending contributes to price rigidity from penny to dollar digits and across a wide range of product categories, retail formats, and …