scholarly journals Menu Costs, Posted Prices, and Multiproduct Retailers

1999 ◽  
Vol 31 (4) ◽  
pp. 683 ◽  
Author(s):  
Shantanu Dutta ◽  
Mark Bergen ◽  
Daniel Levy ◽  
Robert Venable
Keyword(s):  
Menu Costs ◽  
Posted Prices

The Effects of Menu Costs on Retail Performance: Evidence from Adoption of the Electronic Shelf Label Technology

2020 ◽  
Author(s):  
Ioannis Stamatopoulos ◽  
Achal Bassamboo ◽  
Antonio Moreno
Keyword(s):  
Shelf Life ◽  
Operations Management ◽  
Cost Savings ◽  
Labor Cost ◽  
Price Adjustment ◽  
Menu Costs ◽  
Price Changes ◽  
Product Categories ◽  
Material Costs ◽  
Gross Margins

We use the adoption of electronic shelf labels (ESLs) by an international grocery retailer in 2015 to identify the effects of physical menu costs (i.e., labor and material costs of price adjustment) on retail performance. We find that the installation of ESLs increased gross margins substantially, which implies profit gains that go far beyond labor cost savings. We also explore the mechanism behind this effect. We find that the lift in gross margins was associated with an increase in quantity sold and a decrease in price per unit sold, and that the lift primarily came from low-shelf life product categories. Moreover, we find that more and smaller price changes occurred with ESLs. These additional price changes were mostly price decreases, and they were dispersed in time. Our findings are consistent with reductions in both variable and fixed menu costs (i.e., both costs that scale with the number of products affected and costs that do not). This paper was accepted by Vishal Gaur, operations management.

Frequent price changes under menu costs

1999 ◽  
Vol 23 (7) ◽  
pp. 1065-1076 ◽  
Author(s):  
Per Svejstrup Hansen
Keyword(s):  
Menu Costs ◽  
Price Changes

Multidimensional Bargaining and Posted Prices

2021 ◽  
pp. 105317
Author(s):  
Martin Hagen ◽  
Ángel Hernando-Veciana
Keyword(s):  
Posted Prices

scholarly journals Menu Costs at Work: Restaurant Prices and the Introduction of the Euro

2004 ◽  
Author(s):  
Bart Hobijn ◽  
Federico Ravenna ◽  
Andrea Tambalotti
Keyword(s):  
Menu Costs

scholarly journals Beyond Posted Prices: The Past, Present, and Future of Participative Pricing Mechanisms

2017 ◽  
Author(s):  
Martin Spann ◽  
Robert Zeithammer ◽  
Marco Bertini ◽  
Ernan Haruvy ◽  
Sandy D. Jap ◽  
...  
Keyword(s):  
The Past ◽  
Participative Pricing ◽  
Posted Prices

Menu costs, firm size and price rigidity

2000 ◽  
Vol 66 (1) ◽  
pp. 59-63 ◽  
Author(s):  
Robert A Buckle ◽  
John A Carlson
Keyword(s):  
Firm Size ◽  
Price Rigidity ◽  
Menu Costs

scholarly journals A Note on Buyers’ Behavior in Auctions with an Outside Option

Games ◽  
2020 ◽  
Vol 11 (3) ◽  
pp. 26
Author(s):  
Alexander Maslov
Keyword(s):  
Outside Option ◽  
Posted Prices

In this note I show that the equilibrium in cutoff strategies observed in auctions with a buy-it-now price may also arise in markets where objects are sold simultaneously by auctions and posted prices. However, contrary to auctions with a buy-it-now price where buyers need to know only the total number of players in the market, in the latter environment buyers must also observe the number of active bidders in the auction for the equilibrium to exist in cutoff strategies.

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