Inflation, price dispersion, and market structure

Çağlayan, Mustafa; Filiztekin, Alpay; Rauh, Michael T.

doi:10.1016/j.euroecorev.2008.01.003

Cited by 37 publications

(33 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…High levels of price dispersion motivate buyers to execute more search activities and examine differences among alternatives in order to locate the most suitable product. Previous studies have found the positive effect of price dispersion on search intention (Biswas & Burman, 2009;Caglayan et al, 2008). As buyers spend more time and effort on the transaction, the cost of transaction increases and the perceived value decreases.…”

Section: Research Hypothesesmentioning

confidence: 99%

How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market

Vassileva

Noorian

et al. 2015

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

The issues of trust fraud, product genuineness and price dispersion jointly make Chinese C2C buyers difficult to identify trustworthy sellers with a low price. Little is known about the generation of initial trust when buyers search products and receive lists of widely ranged prices. This study proposes a theoretical model to explain how price dispersion interacts with other factors in C2C purchase, such as initial trust, perceived risk, perceived value and purchase intention. Product type is considered as a moderator. 261 students were invited in a survey-based experiment. The results from PLS analysis show that price dispersion negatively affects perceived value, whilst, positively affects perceived risk, which further influences perceived value negatively. Price dispersion also negatively influences initial trust through perceived risk. Moreover, the negative effects of price dispersion are stronger when buyers purchase high-touch products.Keywords: consumer to consumer, trust, price dispersion, purchase intention, perceived risk The issues of trust fraud, product genuineness and price dispersion jointly make Chinese C2C buyers difficult to identify trustworthy sellers with a low price. Little is known about the generation of initial trust when buyers search products and receive lists of widely ranged prices. This study proposes a theoretical model to explain how price dispersion interacts with other factors in C2C purchase, such as initial trust, perceived risk, perceived value and purchase intention. Product type is considered as a moderator. 261 students were invited in a survey-based experiment. The results from PLS analysis show that price dispersion negatively affects perceived value, whilst, positively affects perceived risk, which further influences perceived value negatively. Price dispersion also negatively influences initial trust through perceived risk. Moreover, the negative effects of price dispersion are stronger when buyers purchase high-touch products.

show abstract

Section: Research Hypothesesmentioning

confidence: 99%

How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market

Vassileva

Noorian

et al. 2015

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

show abstract

“…Caglayan and Filiztekin (2006) estimate that nominal prices stay for 3 months on average, using data from Istanbul Chamber of Commerce for the calculation of a cost of living index for wage earners in Istanbul. Caglayan et al (2008) show that the mean price duration depends on the market structure. While these results are similar to our findings, their data falls short of consumer price coverage (around 25% of the cost of living index).…”

Section: Overview Of Inflation In Turkeymentioning

confidence: 99%

Price Rigidity in Turkey: Evidence from Micro Data

Ozmen¹,

Sevinc²

2015

Emerging Markets Finance and Trade

View full text Add to dashboard Cite

In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy. JEL Classifications: C41; D40; E31; E50

show abstract

“…Furthermore, this result is robust to different time periods as Table 5 shows. 9 Moreover, inflation expectations and uncertainty can be the underlying causes behind this kind of relation (see, for example, Caraballo et al 2006, Caraballo and Dabús 2008, Caglayan et al 2008, Becker and Nautz 2009band Choi 2010. This issue is studied in the next section.…”

Section: [Table 5 Here]mentioning

confidence: 99%

Price Dispersion and Optimal Inflation: The Spanish Case

Caraballo

Dabús

2013

Journal of Applied Economics

View full text Add to dashboard Cite

This paper studies the relation between inflation and relative price variability (RPV) in Spain during the 1987-2009 period. We find that this relation presents a U-shape profile, and that the optimal annual inflation rate (defined as the one that minimizes RPV) is around 4%, higher than the 2% inflation target proposed by the European Monetary Union. More importantly, this result does not depend on whether the monetary regime is before or after the euro. Hence, the main policy implication is that disinflation efforts to achieve the 2% inflation target result in welfare losses. The key link between inflation and RPV is unexpected inflation, whose optimal level is around zero. This suggests that monetary policy matters: the welfare costs associated with higher RPV can be minimized with a credible and predictable inflation targeting policy set at the appropriate level. JEL classification codes: E30, E31

show abstract

Inflation, price dispersion, and market structure

Cited by 37 publications

References 31 publications

How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market

How do you feel when you see a list of prices? the interplay among price dispersion, perceived risk and initial trust in Chinese C2C market

Price Rigidity in Turkey: Evidence from Micro Data

Price Dispersion and Optimal Inflation: The Spanish Case

Contact Info

Product

Resources

About