Synchronization of price changes by multiproduct firms: evidence from Canadian newspaper prices

Price Rigidity in Turkey: Evidence from Micro Data

“…Generally it is not very common to observe declining prices in services sector, however, this largely depends on the coverage of the items. In our case the share of price declines in services is 41%, which is very similar to, for instance, what Kaufmann (2009) reports for Switzerland (38 % over 1993-2000. As discussed in the data section, the services prices collected in our study are mostly 17 We employ Hartigan and Hartigan (1985) dip test for unimodality for the price change distributions of sub groups where we find that for all groups, but energy, the distributions are rejected to be uni-modal.…”

Price synchronization in retailing: some empirical evidence

“…The study considers disaggregated data on prices of foodstuffs in Israel during 1978-84, and obtains evidence that price changes are not synchronized even under episodes of high inflation, indicating that staggering is a relevant phenomenon. Moreover, Fisher and Konieczny (2000) found that lower and more stable inflation rates are associated with more synchronized price changes in the case of Canadian daily newspapers. It is worth mentioning that chronic high rates of inflation in Brazil cease to exist after the stabilization program in 1994 (Plano Real ), but are still higher than in developed markets.…”

“…Empirically, staggering and synchronization are investigated as a microeconomic feature through the Fisher and Konieczny (2000) index. dias et al (2005) provide a clear interpretation for the index of price changes in the context of interfirm price changes.…”

“…dias et al (2005) provide a clear interpretation for the index of price changes in the context of interfirm price changes. It builds on Fisher and Konieczny (2000), and suggests the following summary measure for capturing the synchronization of price changes across different firms. The Fisher and Konieczny (FK) index is:…”

“…The related microeconomic studies can investigate actual frictions in price setting that could reflect underlying informational and adjustment cost aspects. Fisher and Konieczny (2000) delineate some essential elements for the construction of a price synchronization index that are further detailed by dias et al (2005). The present paper focuses on the application of the referred index for the Brazilian retail market, specifically tire dealers and selected items in supermarkets.…”