Template-Type: ReDIF-Paper 1.0
Author-Name: Espen Moen
Author-Name-First: Espen
Author-Name-Last: Moen
Author-Workplace-Name: BI Norwegian Business School
Author-Name: Fredrik Wulfsberg
Author-Name-First: Fredrik
Author-Name-Last: Wulfsberg
Author-Workplace-Name: Oslo Business School, Oslo Akershus University College of Applied Sciences
Author-Name: Øyvind Aas
Author-Name-First: Øyvind
Author-Name-Last: Aas
Author-Workplace-Name: Université libre de Bruxelles
Title: Price Dispersion and the Role of Stores
Abstract: This paper studies price dispersion in the Norwegian retail market for 766 products across 4297 stores over 60 months. Price dispersion for homogeneous products is significant and persistent, with a coefficient of variation of 37% for the median product. Price dispersion differs between product categories and over time. Store heterogeneity accounts for 30% of the observed variation in prices for the median product-month and for around 50% for the sample as a whole. Price dispersion is still prevalent after correcting for store heterogeneity.
Classification-JEL: D2, D4, E3
Creation-Date: 2017-08-09
File-URL: http://hdl.handle.net/20.500.12199/1332
File-Format: text/html
Keywords: Price dispersion, retail prices, store heterogeneity
Handle: RePEc:oml:wpaper:201704