Journal article
Asymmetric Wholesale Pricing: Theory and Evidence
Abstract
Asymmetric pricing or asymmetric price adjustment is the phenomenon where prices rise more readily than they fall. We offer and provide empirical support for a new theory of asymmetric pricing in wholesale prices. Wholesale prices may adjust asymmetrically in the small but symmetrically in the large, when retailers face cost of price adjustment. Such retailers will not adjust prices for small changes in their costs. Manufacturers then see a …
Authors
Ray S; Chen HA; Bergen ME; Levy D
Journal
Marketing Science, Vol. 25, No. 2, pp. 131–154
Publisher
Institute for Operations Research and the Management Sciences (INFORMS)
Publication Date
March 2006
DOI
10.1287/mksc.1050.0138
ISSN
0732-2399