Inventory Information Frictions Explain Price Rigidity in Perishable Groceries

Naveed Chehrazi · Robert Evan Sanders · Ioannis Stamatopoulos

11 citations0/0 files storedMarketing Science

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Consumer Market Behavior and Pricing Supply Chain and Inventory Management Economics of Agriculture and Food Markets

Abstract

This paper demonstrates that price rigidity in perishable groceries can be explained by the lack of real-time reliable inventory data, rather than high physical menu costs.

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References

1979Moral Hazard and Observability 1994Optimal Dynamic Pricing of Inventories with Stochastic Demand over Finite Horizons 2008Five Facts about Prices: A Reevaluation of Menu Cost Models *1985Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly 1985Optimal Pricing and Return Policies for Perishable Commodities 2007Menu Costs and Phillips Curves 1988A Theory of Dynamic Oligopoly, II: Price Competition, Kinked Demand Curves, and Edgeworth Cycles 1990Real Rigidities and the Non-Neutrality of Money

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