000164872 001__ 164872
000164872 005__ 20180122232212.0
000164872 037__ $$a329-2016-13309
000164872 041__ $$aen_US
000164872 084__ $$aD12
000164872 084__ $$aD83
000164872 084__ $$aL13
000164872 084__ $$aL81.
000164872 245__ $$aHysteresis, Price Acceptance, and Reference Prices
000164872 260__ $$c2014
000164872 269__ $$a2014
000164872 270__ $$mtrichards@asu.edu$$pRichards,   Timothy J.
000164872 270__ $$mmig7@cornell.edu$$pGómez,   Miguel I.
000164872 270__ $$miiermole@asu.edu$$pPrintezis,   Iryna
000164872 300__ $$a48
000164872 336__ $$aConference Paper/ Presentation
000164872 520__ $$aThe existence of price thresholds in grocery retailing is well-documented. Most authors explain the existence of price thresholds using Assimilation-Contrast Theory (ACT), Adaptation Level Theory (ALT) or Prospect Theory (PT). However, each of these theories is untenable if consumers are believed to behave rationally. We offer a theoretical explanation grounded in Real Options Theory (ROT) and economic hysteresis. We test the ROT hypothesis against three plausible alternatives using a maximum likelihood friction model that we augment for unobserved heterogeneity. Our findings support the ROT hypothesis, and suggests that the existence of price thresholds in aggregate data are driven by a common recognition of real option values, which do not disappear with the inclusion of consumer heterogeneity.
000164872 542__ $$fLicense granted by Timothy  Richards (trichards@asu.edu) on 2014-03-19T21:45:14Z (GMT):

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000164872 650__ $$aAgribusiness
000164872 650__ $$aAgricultural and Food Policy
000164872 650__ $$aConsumer/Household Economics
000164872 650__ $$aDemand and Price Analysis
000164872 650__ $$aIndustrial Organization
000164872 6531_ $$aconsumer search
000164872 6531_ $$ahysteresis
000164872 6531_ $$areference prices
000164872 6531_ $$areal options
000164872 6531_ $$aretail prices
000164872 6531_ $$athresholds.
000164872 700__ $$aRichards, Timothy J.
000164872 700__ $$aGómez, Miguel I.
000164872 700__ $$aPrintezis, Iryna
000164872 773__ $$d2014
000164872 8564_ $$s282755$$uhttp://ageconsearch.umn.edu/record/164872/files/Richards_Reference_Prices_AAEA_2014.pdf
000164872 887__ $$ahttp://purl.umn.edu/164872
000164872 909CO $$ooai:ageconsearch.umn.edu:164872$$pGLOBAL_SET
000164872 912__ $$nSubmitted by Timothy  Richards (trichards@asu.edu) on 2014-03-19T21:51:18Z
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  Previous issue date: 2014
000164872 982__ $$gAgricultural and Applied Economics Association>2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota
000164872 980__ $$a329