Pricing behavior in United States manufacturing industries: A statistical study using disaggregated data

Elizabeth M. Caucutt, Mrinal Ghosh, Christina M.L. Kelton

Research output: Contribution to journalArticle

8 Scopus citations

Abstract

We investigate the relationship between industrial market structure and price flexibility (the administered-pricing hypothesis) across United States manufacturing industries by embedding market-structure variables in a model relating relative price variability (dispersion) and inflation. While we find support for a positive relationship between variability and inflation, we do not find that high seller concentration lessens the impact of inflation on price variability. We do find that the larger the efficient-sized plant, the lower the impact of inflation on variability. We also find strong effects of input prices and degree of product durability on relative price variability.

Original languageEnglish (US)
Pages (from-to)745-771
Number of pages27
JournalReview of Industrial Organization
Volume9
Issue number6
DOIs
StatePublished - Dec 1 1994
Externally publishedYes

Keywords

  • Relative price variability
  • administered pricing
  • input-price pass-through
  • market concentration
  • product durability

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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