Price synchronization in retailing: some empirical evidence

Marcelo Resende, Rodrigo Zeidan, Gabriel P. Rega
2014 Brazilian Journal of Political Economy  
The paper investigates the synchronization of price changes in the context of retail tire dealers in São Paulo-Brazil and selected items in supermarkets for cleaning supplies and food in Rio de Janeiro-Brazil. Results indicate similar and non-negligible synchronization for different brands, although magnitudes are distant from a perfect synchronization pattern. We find interesting patterns in inter-firm competition, with similar magnitudes across different tire types. Intra-chain
more » ... is substantial, indicating that a common price adjustment policy tends to be sustained for each chain across different products.
doi:10.1590/s0101-31572014000200007 fatcat:uwvz7hbwsndk3dojwi7x6o6hum