() and Christoph R. Weiss
Jens-Peter Loy: Georg-August-University Goettingen
Christoph R. Weiss: Vienna University of Economics & B.A.
Abstract: Using a unique panel data set for German grocery prices we find significant price synchronization within food retail chains as well as within individual food stores (between products). Price synchronization between chains appears to be less pronounced. Common shocks can only explain some synchronization, indicating that strategic motives as well as menu costs are of significant importance.
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