Publikationsdatum:
2016-04-24
Beschreibung:
The existence of price thresholds in grocery retailing is well-documented. Most authors explain the existence of price thresholds using Assimilation-Contrast Theory, Adaptation Level Theory, or Prospect Theory. However, each of these theories is untenable if consumers are believed to behave rationally. We offer a theoretical explanation grounded in Real Options Theory (ROT) and economic hysteresis. We test the ROT hypothesis against three plausible alternatives using a maximum likelihood friction model that we augment for unobserved heterogeneity. Our findings support the ROT hypothesis, and suggest that the existence of price thresholds in aggregate data are driven by a common recognition of real option values, which do not disappear with the inclusion of consumer heterogeneity.
Schlagwort(e):
D12 - Consumer Economics: Empirical Analysis, D83 - Search
;
Learning
;
Information and Knowledge
;
Communication
;
Belief, L13 - Oligopoly and Other Imperfect Markets, L81 - Retail and Wholesale Trade
;
e-Commerce
Print ISSN:
0002-9092
Digitale ISSN:
1467-8276
Thema:
Land- und Forstwirtschaft, Gartenbau, Fischereiwirtschaft, Hauswirtschaft
,
Wirtschaftswissenschaften
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