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Price Dispersion and the Role of Stores

Moen, Espen Rasmus; Wulfsberg, Fredrik; Aas, Øyvind Nilsen
Journal article, Peer reviewed
Accepted version
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URI
https://hdl.handle.net/11250/2675662
Date
2019
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Original version
Scand. J. of Economics. 2019, 122 (39), 1181-1206   10.1111/sjoe.12356
Abstract
In this paper, we study price dispersion in the Norwegian retail market for 766 products across 4,297 stores over 60 months. Price dispersion for homogeneous products is significant and persistent, with a coefficient of variation of 37 percent for the median product. Price dispersion differs between product categories and over time. Store heterogeneity accounts for 30 percent of the observed variation in prices for the median product–month, and for around 50 percent for the sample as a whole. Price dispersion is still prevalent after correcting for store heterogeneity.
Publisher
Wiley
Journal
The Scandinavian Journal of Economics

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