PRICE-SETTING BEHAVIOR IN TURKISH INDUSTRIES: EVIDENCE FROM SURVEY DATA


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Sahinoez S., Saracoglu B.

DEVELOPING ECONOMIES, vol.46, no.4, pp.363-385, 2008 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 46 Issue: 4
  • Publication Date: 2008
  • Doi Number: 10.1111/j.1746-1049.2008.00070.x
  • Title of Journal : DEVELOPING ECONOMIES
  • Page Numbers: pp.363-385

Abstract

This study investigates the price-setting behavior of Turkish industries based on the results of a survey that was conducted by the Central Bank of the Republic of Turkey. The results show that, under normal conditions, the majority of the firms follow a time-dependent pricing rule but when significant events occur a substantial fraction of them alter their behavior to state-dependent reviewing. The median Turkish firm reviews its prices every month, but changes its prices four times a year. Price reviews and changes are affected by: the market share, price discrimination, customer type, firm size, and the existence of regulated prices.