Non-renewal clauses and price rigidity: Dynamic panel estimates on publishing data

Michel Beine, Étienne Farvaque

Research output: Contribution to journalReview articleResearchpeer-review

Abstract

The paper deals with the fear-of-losing-customers argument for price rigidity. We address the following question: does the fact that customers are subject to non-renewal clause foster price flexibility? Using a new database in which customers are forced to change their subscription each year, we find that sluggishness in price adjustment exists even when customers are forced to shift from one product to another. Our empirical methodology also allows to account for unobserved heterogeneity and other features of the publishing sector.

Translated title of the contributionNon-renewal clauses and price rigidity: Dynamic panel estimates on publishing data
LanguageFrench
Pages57-66
Number of pages10
JournalRevue Economique
Volume62
Issue number1
DOIs
Publication statusPublished - 24 Jan 2011

Fingerprint

Price rigidity
Dynamic panel
Renewal
Unobserved heterogeneity
Price adjustment
Data base
Methodology
Price flexibility
Subscription

Cite this

Beine, Michel ; Farvaque, Étienne. / Clause de non-renouvellement et rigidité des prix : Résultats sur le secteur de l'édition en France. In: Revue Economique. 2011 ; Vol. 62, No. 1. pp. 57-66.
@article{9397f7dc13224e6bb572425114266a59,
title = "Clause de non-renouvellement et rigidit{\'e} des prix: R{\'e}sultats sur le secteur de l'{\'e}dition en France",
abstract = "The paper deals with the fear-of-losing-customers argument for price rigidity. We address the following question: does the fact that customers are subject to non-renewal clause foster price flexibility? Using a new database in which customers are forced to change their subscription each year, we find that sluggishness in price adjustment exists even when customers are forced to shift from one product to another. Our empirical methodology also allows to account for unobserved heterogeneity and other features of the publishing sector.",
author = "Michel Beine and {\'E}tienne Farvaque",
year = "2011",
month = "1",
day = "24",
doi = "10.3917/reco.621.0057",
language = "French",
volume = "62",
pages = "57--66",
journal = "Revue Economique",
issn = "0035-2764",
publisher = "Presses de Sciences Po",
number = "1",

}

Clause de non-renouvellement et rigidité des prix : Résultats sur le secteur de l'édition en France. / Beine, Michel; Farvaque, Étienne.

In: Revue Economique, Vol. 62, No. 1, 24.01.2011, p. 57-66.

Research output: Contribution to journalReview articleResearchpeer-review

TY - JOUR

T1 - Clause de non-renouvellement et rigidité des prix

T2 - Revue Economique

AU - Beine, Michel

AU - Farvaque, Étienne

PY - 2011/1/24

Y1 - 2011/1/24

N2 - The paper deals with the fear-of-losing-customers argument for price rigidity. We address the following question: does the fact that customers are subject to non-renewal clause foster price flexibility? Using a new database in which customers are forced to change their subscription each year, we find that sluggishness in price adjustment exists even when customers are forced to shift from one product to another. Our empirical methodology also allows to account for unobserved heterogeneity and other features of the publishing sector.

AB - The paper deals with the fear-of-losing-customers argument for price rigidity. We address the following question: does the fact that customers are subject to non-renewal clause foster price flexibility? Using a new database in which customers are forced to change their subscription each year, we find that sluggishness in price adjustment exists even when customers are forced to shift from one product to another. Our empirical methodology also allows to account for unobserved heterogeneity and other features of the publishing sector.

UR - http://www.scopus.com/inward/record.url?scp=79951863615&partnerID=8YFLogxK

U2 - 10.3917/reco.621.0057

DO - 10.3917/reco.621.0057

M3 - Review article

VL - 62

SP - 57

EP - 66

JO - Revue Economique

JF - Revue Economique

SN - 0035-2764

IS - 1

ER -