On the Inefficiency of Item Pricing Laws*
Munich Personal RePEc Archive When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws Bergen, Mark and Levy, Daniel and Ray, Sourav and Rubin, Paul and Zeliger, Ben University of Minnesota, Bar-Ilan University, McMaster University, Emory University, and Cornell University 8 October 2006 Online at https://mpra.ub.uni-muenchen.de/1158/ MPRA Paper No. 1158, posted 14 Dec 2006 UTC When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws* Mark Bergen University of Minnesota Daniel Levy** Bar-Ilan University Sourav Ray McMaster University Paul H. Rubin Emory University Benjamin Zeliger Cornell University JEL Codes: K20, L11, L81, E31 Key Words: Item Pricing Law, Cost of Item Pricing Law, Cost of Price Adjustment, Menu Cost, Retail Pricing Last Revision: October 6, 2006 * We are grateful to the anonymous referee and to the editor, Sam Peltzman, for constructive comments and suggestions and to Joel Waldfogel, the discussant at the August 2003 NBER Law and Economic program meeting in Cambridge, MA, for thoughtful and constructive comments and criticism. We also thank the participants of the May 2005 Israeli Law and Economic Association Annual Conference at Haifa University, the August 2003 NBER Law and Economics Program Meeting in Cambridge, MA, and the June 2003 INFORMS-Marketing Science Conference in College Park, MD, as well as the seminar participants at Bar-Ilan University Economics Workshop, Bar-Ilan University Law School, Hebrew University, George Mason University, Tbilisi State University, Michigan State Legislature’s House Committee of Commerce (the Michigan Item Pricing Law Subcommittee), and the Israeli Ministry of Industry, Trade, and Employment's Conferences on the Israeli Item Pricing Law, for helpful comments and discussions.
[Show full text]