Abstract
We use panel data of regular prices posted by on- and offline stores. We study on- and offline price rigidity and price synchronization both within and across retailers. Our results suggest that, first, the physical cost of price adjustment has a small, albeit statistically significant effect on price rigidity. Second, prices are more similar within retailers than across retailers. Third, prices are more similar across online stores than across offline stores. However, price change synchronization is not higher across online stores than across offline stores. Fourth, our results suggest that the likelihood of pricing cascades is positively correlated with inflation. This underscores the importance of maintaining price stability in order to avoid coordination dynamics that may exacerbate the inflationary process.