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

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

doi:10.1007/BF01026583

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

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

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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 language	English (US)
Pages (from-to)	745-771
Number of pages	27
Journal	Review of Industrial Organization
Volume	9
Issue number	6
DOIs	https://doi.org/10.1007/BF01026583
State	Published - Dec 1994

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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10.1007/BF01026583

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title = "Pricing behavior in United States manufacturing industries: A statistical study using disaggregated data",

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.",

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author = "Caucutt, {Elizabeth M.} and Mrinal Ghosh and Kelton, {Christina M.L.}",

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T2 - A statistical study using disaggregated data

AU - Caucutt, Elizabeth M.

AU - Ghosh, Mrinal

AU - Kelton, Christina M.L.

PY - 1994/12

Y1 - 1994/12

N2 - 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.

AB - 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.

KW - Relative price variability

KW - administered pricing

KW - input-price pass-through

KW - market concentration

KW - product durability

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JF - Review of Industrial Organization

SN - 0889-938X

IS - 6

ER -

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

Abstract

Keywords

ASJC Scopus subject areas

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