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The Variances of Wholesale and Retail Prices: Tests of a Marshallian Hypothesis

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  • Andrew Schein

Abstract

Alfred Marshall hypothesized that retail prices fluctulate less than wholesale prices. This paper presents statistical evidence that supports Marshall's hypothesis. The results from various statistical tests of retail and wholesale prices show that for many goods the variances of retail prices are significantly smaller than the variances of wholesale prices.

Suggested Citation

  • Andrew Schein, 1995. "The Variances of Wholesale and Retail Prices: Tests of a Marshallian Hypothesis," Working Papers 95-15, New York University, Leonard N. Stern School of Business, Department of Economics.
    • Handle: RePEc:ste:nystbu:95-15
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    Cited by:

    1. Kenji Matsui, 2010. "Effects of wholesaler concentration on retailers by format: evidence from Japanese brand-level price data," Applied Economics, Taylor & Francis Journals, vol. 42(18), pages 2379-2391.

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