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| Hoe Sang Chung and Min Kim |
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| ''Low-price guarantees and pricing behavior: evidence from hypermarkets in Korea'' |
| ( 2016, Vol. 36 No.2 ) |
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| This study examines the relationship between a low-price guarantee and the price
competition among three leading hypermarkets in Korea. Using retail price data for
individual products, we find that after the guarantee, the price-matching store and its
mentioned rival increase their prices while the non-mentioned competitor decreases its
prices. The reason for such pricing patterns is discussed as well. |
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| Keywords: Low-price guarantees, Cartel-facilitating devices, Signals of low prices |
JEL: D4 - Market Structure and Pricing: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Dec 24 2015 | | Manuscript Accepted : Jun 22 2016 |
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