The pricing behaviour of firms in the euro area: new survey evidence

Silvia Fabiani (), Harald Stahl, Claudia Kwapil, Martine Druant, Ad Stokman, Bettina Landau, Roberto Sabbatini (), Thomas Mathä, Claire Loupias (), Ignacio Hernando and Fernando Martins

No 535, Working Paper Series from European Central Bank

Abstract: This study investigates the pricing behaviour of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks, covering more than 11,000 firms. The results, robust across countries, show that firms operate in monopolistically competitive markets, where prices are mostly set following markup rules and where price discrimination is common. Around one-third of firms follow mainly time-dependent pricing rules while two thirds allow for elements of state-dependence. The majority of firms take into account past and expected economic developments in their pricing decisions. Price stickiness is mainly driven by customer relationships JEL Classification: E30, D40

Keywords: inflation persistence; nominal rigidity; price setting; real rigidity; survey data (search for similar items in EconPapers)
Date: 2005-10
Note: 339070
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Citations: View citations in EconPapers (160)

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Related works:
Journal Article: What Firms' Surveys Tell Us about Price-Setting Behavior in the Euro Area (2006)
Working Paper: What Firms' Surveys Tell Us about Price-Setting Behavior in the Euro Area (2006)
Working Paper: The pricing behaviour of firms in the Euro area: new survey evidence (2005)
Working Paper: The Pricing Behaviour of Firms in the Euro Area: New Survey Evidence (2005)
Working Paper: The pricing behaviour of firms in the euro area: new survey evidence (2005)
Working Paper: The Pricing Behaviour of Firms in the Euro Area: New Survey Evidence (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2005535

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