Synchronisation in multi-product firms. Evidence from german grocery prices.
Using a unique panel data set for German grocery prices we find significant price synchronization within food retail chains as well as within individual food stores (between products). Price synchronization between chains appears to be less pronounced. Common shocks can only explain some synchronization, indicating that strategic motives as well as menu costs are of significant importance. (author's abstract)
Synchronization due to common shocks? Evidence from German grocery prices
Abstract 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.
Synchronization of price changes by multiproduct firms: evidence from Canadian newspaper prices
Abstract Using data for Canadian daily newspapers we find that price changes of papers owned by the same firm are synchronized. On the other hand, independently owned newspapers do not appear to change their prices together.