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Price-setting Behaviour - Insights from Australian Firms

Author

Listed:
  • Anna Park

    (Reserve Bank of Australia)

  • Vanessa Rayner

    (Reserve Bank of Australia)

  • Patrick D'Arcy

    (Reserve Bank of Australia)

Abstract

Since 2004, the RBA has been conducting a survey of how firms set prices, how frequently they review and change prices, and what factors influence these decisions. The results show that firms employ a range of approaches to price setting, with around half reviewing their prices at a regular interval. Early in the survey period, costs were the most important factor in price setting, though demand considerations became more important when economic conditions softened.

Suggested Citation

  • Anna Park & Vanessa Rayner & Patrick D'Arcy, 2010. "Price-setting Behaviour - Insights from Australian Firms," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 7-14, June.
    • Handle: RePEc:rba:rbabul:jun2010-02
    as

    Download full text from publisher

    File URL: https://www.rba.gov.au/publications/bulletin/2010/jun/pdf/bu-0610-2.pdf
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    References listed on IDEAS

    as
    1. Hall, Simon & Walsh, Mark & Yates, Anthony, 2000. "Are UK Companies' Prices Sticky?," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 425-446, July.
    2. Fabiani, S. & Druant, M. & Hernando, I. & Kwapil, C. & Landau, B. & Loupias, C. & Martins, F. & Mathä, T. & Sabbatini, R. & Stahl, H. & Stockman, A., 2005. "The Pricing Behaviour of Firms in the Euro Area: New Survey Evidence," Working papers 135, Banque de France.
    3. Silvia Fabiani & Martine Druant & Ignacio Hernando & Claudia Kwapil & Bettina Landau & Claire Loupias & Fernando Martins & Thomas Mathä & Roberto Sabbatini & Harald Stahl & Ad Stokman, 2006. "What Firms' Surveys Tell Us about Price-Setting Behavior in the Euro Area," International Journal of Central Banking, International Journal of Central Banking, vol. 2(3), September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Denny Lie & Anirudh S. Yadav, 2017. "Time-Varying Trend Inflation and the New Keynesian Phillips Curve in Australia," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 42-66, March.
    2. Kivisto, Hanna, 2016. "Capital as Power and the Corporatization of Education," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1-17.

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