Asymmetric price adjustment: evidence from weekly product‐level scanner price data

Abstract We investigate asymmetric price responses by considering a unique, highly disaggregate retailer‐ and product‐level time series at a major supermarket chain. We find asymmetry exists, but is limited in scope and there is no evidence of a pervasive chain wide asymmetric pricing strategy. To explain product level variation, we borrow from both economic and marketing perspectives to suggest menu costs, operational efficiency, competition, …