Synchronisation due to common shocks? Evidence from German grocery prices

Jens-Peter Loy, Christoph Weiss

    Publication: Scientific journalJournal articlepeer-review


    Using unique panel data for German grocery prices, we find significant price synchronization within retail chains and between products. Common shocks can only explain some synchronization, indicating that strategic motives as well as menu costs are of significant importance.
    Original languageEnglish
    Pages (from-to)123-127
    JournalEconomics Letters
    Issue number1
    Publication statusPublished - 2004

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