Asymmetric Wholesale Pricing: Theory and Evidence

Published Online:https://doi.org/10.1287/mksc.1050.0138

References

  • Alderson W. A marketing view of competition. J. Marketing (1937) 1(3):189–190CrossrefGoogle Scholar
  • Bacon R. W. Rockets and feathers: The asymmetric speed of adjustment of U.K. retail gasoline prices to cost changes. Energy Econom. (1991) 13(3):211–218CrossrefGoogle Scholar
  • Ball L., Mankiw N. G. A sticky-price manifesto. Carnegie-Rochester Conference Series on Public Policy (1994) 41(Pittsburgh, PA)127–152CrossrefGoogle Scholar
  • Ball L., Mankiw N. G. Relative price changes as aggregate supply shocks. Quart. J. Econom. (1995) 110(1):161–193CrossrefGoogle Scholar
  • Barboya David. The great pork gap: Hog prices have plummeted. Why haven’t store prices? New York Times (1997) January 7):1Sect. C, Col. 2Google Scholar
  • Barsky R., Bergen M., Dutta S., Levy D., Feenstra R., Shapiro M. What can the price gap between branded and generic products tell us about markups? Scanner Data and Price Indexes (2003) (National Bureau of Economic Research, University of Chicago Press, Chicago, IL) 165–225CrossrefGoogle Scholar
  • Basu S. Intermediate goods and business cycles: Implications for productivity and welfare. Amer. Econom. Rev. (1995) 85(3):512–531Google Scholar
  • Benabou R., Gertner R. Search with learning from prices—Does increased inflationary uncertainty lead to higher markups? Rev. Econom. Stud. (1993) LX:69–93CrossrefGoogle Scholar
  • Bergen M., John G. Understanding cooperative advertising participation rates in conventional channels. J. Marketing Res. (1997) XXXIV(Aug.):357–369CrossrefGoogle Scholar
  • Bergen M., Dutta S., Shugan S. M. Branded variants: A retail perspective. J. Marketing Res. (1996) XXXIII:9–19CrossrefGoogle Scholar
  • Blanchard O. J., Dornbusch R., Simonsen M. Price asynchronization and price-level inertia. Inflation, Debt, and Indexation (1983) (MIT Press, Cambridge, MA) 3–24Google Scholar
  • Blinder A. S., Canetti E. R. D., Lebow D. E., Rudd J. B.Asking about Prices: A New Approach to Price Stickiness (1998) (Russel Sage Foundation, New York) Google Scholar
  • Borenstein S., Shepard A. Dynamic pricing in retail gasoline markets. RAND J. Econom. (1996) XXVII:429–451CrossrefGoogle Scholar
  • Borenstein S., Cameron C. A., Gilbert R. Do gasoline prices respond asymmetrically to crude oil price changes? Quart. J. Econom. (1997) 112(1):305–339CrossrefGoogle Scholar
  • Boyde M. S., Brorsen W. B. Price asymmetry in the U.S. pork marketing channel. North Central J. Agricultural Econom. (1988) 10(1):103–109CrossrefGoogle Scholar
  • Cagan P. The hydra-headed monster: The problem of inflation in the United States. (1974) . Domestic affairs case study no. 26, American Enterprise Institute, Washington, D.C.Google Scholar
  • Canadian Press Newswire Cheesed off: Retail price of cheese, ice cream may rise with wholesale hike. (2000) . December 18, Section D 8’00Google Scholar
  • Carlton D. W. The rigidity of prices. Amer. Econom. Rev. (1986) 76(4):637–658Google Scholar
  • Carlton D., Perloff J.Modern Industrial Organisation (1994) (HarperCollins, New York) Google Scholar
  • Cecchetti S. The frequency of price adjustment: A study of the newsstand prices of magazines. J. Econometrics (1986) 31:255–274CrossrefGoogle Scholar
  • Chen H., Ray S., Bergen M., Levy D. Asymmetric price adjustment in the small: An implication of rational inattention. (2005) . Working paper, Winter 2002 North American Meeting of the Econometric Society, Atlanta, GAGoogle Scholar
  • Chevalier J., Kashyap A., Rossi P. Why don’t prices rise during periods of peak demand? Evidence from scanner data. Amer. Econom. Rev. (2003) 93(1):15–37CrossrefGoogle Scholar
  • Chintagunta P. Investigating category pricing behavior in a retail chain. J. Marketing Res. (2002) 39(2):141–154CrossrefGoogle Scholar
  • Choi S. C. Price competition in a channel with a common retailer. Marketing Sci. (1991) 10(4):271–296LinkGoogle Scholar
  • Danziger L. Inflation, fixed cost of price adjustments, and measurement of relative price variability. Amer. Econom. Rev. (1987) 77(4):704–713Google Scholar
  • Desai P. S., Purohit D. “Let me talk to my manager:” Haggling in a competitive environment. Marketing Sci. (2004) 23(2):219–233LinkGoogle Scholar
  • DeSarbo W. S., Rao V. R., Steckel J. H., Wind J., Colombo R. A friction model for describing and forecasting price changes. Marketing Sci. (1987) 6(4):299–319LinkGoogle Scholar
  • Dutta S., Bergen M., Levy D. Price flexibility in channels of distribution: Evidence from scanner data. J. Econom. Dynam. Control (2002) 26(11):1845–1900CrossrefGoogle Scholar
  • Dutta S., Bergen M., Levy D., Venable R. Menu costs, posted prices, and multiproduct retailers. J. Money, Credit, and Banking (1999) 31(4):683–703CrossrefGoogle Scholar
  • Gerstner E., Hess J. D. Can bait and switch benefit consumers? Marketing Sci. (1990) 9(2):114–124LinkGoogle Scholar
  • Gerstner E., Hess J. D., Holthausen D. M. Price discrimination through a distribution channel: Theory and evidence. Amer. Econom. Rev. (1994) 84(5):1437–1445Google Scholar
  • Gordon R. J. What is new-Keynesian economics? J. Econom. Literature (1990) 28(3):1115–1171Google Scholar
  • Greenleaf E. A. The impact of reference price effects on the profitability of price promotions. Marketing Sci. (1995) 14(1):82–104LinkGoogle Scholar
  • Grewal D., Compeau L. D. Pricing and public policy: A research agenda and an overview of the special issue. J. Public Policy and Marketing (1999) 18(1):3–10CrossrefGoogle Scholar
  • Guiltinan J. P., Gundlach G. T. Aggressive and predatory pricing: A framework for analysis. J. Marketing (1996) 60(3):87–102CrossrefGoogle Scholar
  • Hannan T. H., Berger A. N. The rigidity of prices: Evidence from the banking industry. Amer. Econom. Rev. (1991) 81(4):938–945Google Scholar
  • Hess J. D., Gerstner E. Loss leader pricing and rain check policy. Marketing Sci. (1987) 6(4):358–374LinkGoogle Scholar
  • Hoch S., Banerji S. When do private labels succeed? Sloan Management Rev. (1993) 34(4):57–67Google Scholar
  • Hoch S. J., Kim B. D., Montgomery A. L., Rossi P. E. Determinants of store-level price elasticity. J. Marketing Res. (1995) 32:17–29CrossrefGoogle Scholar
  • Ingene C. A., Parry M. E. Channel coordination when retailers compete. Marketing Sci. (1995) 14(4):360–377LinkGoogle Scholar
  • Jeuland A. P., Shugan S. M. Managing channel profits. Marketing Sci. (1983) 2(3):239–272LinkGoogle Scholar
  • Kadiyali V., Chintagunta P., Vilcassim N. Manufacturer-retailer channel interactions and implications for channel power: An empirical investigation of pricing in a local market. Marketing Sci. (2000) 19(2):127–148LinkGoogle Scholar
  • Karrenbrock J. D. The behavior of retail gasoline prices: Symmetric or not? Federal Reserve Bank of St. Louis Rev. (1991) 73(4):19–29Google Scholar
  • Kashyap A. K. Sticky prices: New evidence from retail catalogues. Quart. J. Econom. (1995) 110(1):245–274CrossrefGoogle Scholar
  • Kim S. Y., Staelin R. Manufacturer allowances and retailer pass-through rates in a competitive environment. Marketing Sci. (1999) 18(1):59–76LinkGoogle Scholar
  • Kopalle P. K., Rao A. G., Assuncao J. L. Asymmetric reference price effects and dynamic pricing policies. Marketing Sci. (1996) 15(1):60–85LinkGoogle Scholar
  • Lal R. Manufacturer trade deals and retail price promotions. J. Marketing Res. (1990) 27:428–444CrossrefGoogle Scholar
  • Levy D., Dutta S., Bergen M. Heterogeneity in-price rigidity: Evidence from a case study using micro-level data. J. Money, Credit, and Banking (2002) 34(1):197–220CrossrefGoogle Scholar
  • Levy D., Bergen M., Dutta S., Venable R. The magnitude of menu costs: Direct evidence from large U.S. supermarket chains. Quart. J. Econom. (1997) 112:791–825CrossrefGoogle Scholar
  • Levy D., Dutta S., Bergen M., Venable R. Price adjustment at multiproduct retailers. Managerial Decisions Econom. (1998) 19(2):81–120CrossrefGoogle Scholar
  • Levy D., Zeliger B., Rubin P., Ray S., Bergen M. When little things mean a lot: On the inefficiency of item pricing laws. (2005) . Working paper, Law and Economics Workshop, Summer 2003 NBER, Cambridge, MAGoogle Scholar
  • Litwak David, Maline Nancy. A year of learning to play the new game. Supermarket Bus. (1993) 48(9):47–70Google Scholar
  • Madsen J. B., Yang B. Z. Asymmetric price adjustment in a menu-cost model. J. Econom. (1998) 68(3):295–309Google Scholar
  • Mankiw N. G. Small menu costs and large business cycles: A macroeconomic model of monopoly. Quart. J. Econom. (1985) 100(May):529–539CrossrefGoogle Scholar
  • Messinger P. R., Narasimhan C. Has power shifted in the grocery channel? Marketing Sci. (1995) 14(2):189–223LinkGoogle Scholar
  • Moorthy K. S. Strategic decentralization in channels. Marketing Sci. (1988) 7(4):335–355LinkGoogle Scholar
  • Müller G., Ray S. Asymmetric price adjustments: Evidence from weekly product-level scanner price data. Managerial Decision Econom. (2006) . ForthcomingGoogle Scholar
  • Neumark D., Sharpe S. A. Market structure and the nature of price rigidity: Evidence from the market for consumer deposits. Quart. J. Econom. (1992) 107(2):657–680CrossrefGoogle Scholar
  • Nevo A. Measuring market power in the ready-to-eat cereal industry. Econometrica (2001) 69(2):307–342CrossrefGoogle Scholar
  • Octane Week (1999) . June 13 (6–7)Google Scholar
  • Pauwels K., Srinivasan S. Who benefits from store brand entry? Marketing Sci. (2004) 23(3):364–390LinkGoogle Scholar
  • Peltzman S. Prices rise faster than they fall. J. Political Econom. (2000) 108(3):466–502CrossrefGoogle Scholar
  • Pesendorfer M. Retail sales: A study of pricing behavior in supermarkets. J. Bus. (2002) 75(1):33–66CrossrefGoogle Scholar
  • Pick D. H., Karrenbrock J., Carmen H. F. Price asymmetry and marketing margin behavior: An example for California-Arizona citrus. Agribusiness (1991) 6(1):75–84CrossrefGoogle Scholar
  • Rao R. C. Pricing and promotions in asymmetric duopolies. Marketing Sci. (1991) 10(2):131–144LinkGoogle Scholar
  • Rao V. R., McLaughlin E. W. Modeling the decision to add new products by channel intermediaries. J. Marketing (1989) 53(Jan.):80–88CrossrefGoogle Scholar
  • Ratchford B. T., Srinivasan N. An empirical investigation of returns to search. Marketing Sci. (1993) 12(1):73–87LinkGoogle Scholar
  • Roll R. Orange juice and weather. Amer. Econom. Rev. (1984) 74:861–880Google Scholar
  • Slade M. E. Optimal pricing with costly adjustment: Evidence from retail-grocery prices. Rev. Econom. Stud. (1998) 65:87–107CrossrefGoogle Scholar
  • Tellis G. J., Zufryden F. S. Tackling the retailer decision maze: Which brands to discount, how much, when and why? Marketing Sci. (1995) 14(3):271–299LinkGoogle Scholar
  • Tyagi R. K. A characterization of retailer response to manufacturer trade deals. J. Marketing Res. (1999) 36(4):510–516CrossrefGoogle Scholar
  • Villas-Boas J. M. Product line design for a distribution channel. Marketing Sci. (1998) 17(2):156–169LinkGoogle Scholar
  • Ward R. W. Asymmetry in retail, wholesale and shipping point pricing for fresh vegetables. Amer. Agricultural Econom. Association (1982) 14(May):205–215CrossrefGoogle Scholar
  • Wilkie W. L., Mela C. F., Gundlach G. T. Does “bait and switch” really benefit consumers? Marketing Sci. (1998) 17(3):273–282LinkGoogle Scholar
  • Wilson L. O., Weiss A. M., John G. Unbundling of industrial systems. J. Marketing Res. (1990) XXVII:123–138CrossrefGoogle Scholar
  • Zbaracki M., Ritson M., Levy D., Dutta S., Bergen M. The managerial and customer costs of price adjustment: Direct evidence from industrial markets. Rev. Econom. Statist. (2004) 86(2):514–533CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.