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| Author: | Jungermann, H. (et al.) |
| Title: | The euro changeover and the fators influencing perceived inflation |
| Journal: | Journal of Consumer Policy
2007 : DEC, VOL. 30:4, p. 405-419 |
| Index terms: | consumer behaviour euro inflation |
| Language: | eng |
| Abstract: | The euro changeover affected the perceived inflation (here as p.i.) by increasing it considerably. Based on a number of hypotheses about factors influencing p.i. a new index of p.i. (IPI) was developed by Brachinger and it is suited for measuring it directly. This paper introduces an experimental study examining the influence of purchase frequency and loss aversion, two of the hypotheses in IPI, on individual judgements of price changes. Two additional factors, product segment and price level, were also included to the study. Three methods were used to analyze the judgements of inflation, and some empirical evidence to support the hypotheses was obtained. |
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