Memory for prices and the euro cash changeover: An analysis for cinema prices in Italy

Vincenzo Cestari (), Paolo Del Giovane () and Clelia Rossi-Arnaud ()
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Vincenzo Cestari: Universitï¿½ Lumsa and CNR
Paolo Del Giovane: Bank of Italy
Clelia Rossi-Arnaud: Universitï¿½ di Roma - La Sapienza

No 619, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The question addressed by this study is whether consumers remember past prices correctly. We test Italian citizensï¿½ memory for cinema prices with questionnaires distributed to moviegoers. The analysis concentrates on the memory of pre-euro prices, but the recall for a more recent period is also investigated. The results show that only a small percentage of respondents recalled the correct price, and that the average prices recalled were much lower than the actual pre-euro prices and dated back to years before the changeover. Price recall is less accurate for the respondents who perceive higher and more persistent inflation; it is also worse for the older respondents and for the less frequent movie-goers.

Keywords: prices; memory; perceptions; euro (search for similar items in EconPapers)
JEL-codes: D12 D8 E31 (search for similar items in EconPapers)
Date: 2007-02
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_619_07

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