NBER Publications by Eric Anderson

Contact and additional information for this authorAll publicationsWorking Papers only

Working Papers and Chapters

August 2013Informational Rigidities and the Stickiness of Temporary Sales
with Emi Nakamura, Duncan Simester, Jón Steinsson: w19350
Frequent price changes do not imply a rapid response of prices to economic shocks if the price changes are based on old information. We study the extent of such information “stickiness” for temporary sales. Institutionally, we describe how and why temporary sales are “sticky plans” that are updated infrequently, despite the occurrence of frequent price changes. We then study the empirical characteristics of sales and regular price changes using a unique dataset from a large retailer, containing direct measures of both regular prices and sales, in addition to wholesale prices. The timing and magnitude of regular price changes respond strongly to wholesale price changes and to aggregate economic shocks, while temporary sales are unresponsive. Finally, we show that sales account for the major...
June 2013Multichannel Spillovers from a Factory Store
with Yi Qian, Duncan Simester: w19176
We study how the opening of a factory store impacts a retailer’s demand in its other channels. It is possible that a factory store may damage a retailer's brand image and lead to substitution away from its higher quality core channels. Alternatively, the opening of a factory store may have positive effects as it may attract new buyers and serve as a form of brand advertising. In this paper, we use a natural experiment that arises from a retailer introducing a factory store in 2002. We analyze data that spans all customers and all channels from 1995 to 2007. This allows for careful pre and post analysis of the factory store opening. We find that the introduction of the factory store led to substantial positive spillovers to the core channels that lasted for multiple years. Customers purch...

Contact and additional information for this authorAll publicationsWorking Papers only


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