Price Clustering and Price Barriers: International Evidence

Tao Chen
2014 Nang Yan Business Journal  
In this paper, I try to complement the existing literature by empirically examining the effect of price clustering and price barriers based on the international stock market. Evidence suggests that a strong effect of clustering and barriers is observed on last digit 0. Such effect is not robust and persistent on last digit 5. In addition, the cross-country analysis shows that price clustering and barriers become intensified in countries with a more transparent and open environment.
doi:10.1515/nybj-2015-0001 fatcat:7vhvs2aswbhfng5lgwdkgqp46m