This dissertation studies asymmetric pricing in the small (APIS), where small price increases outnumber small price decreases, the asymmetry disappearing for larger price changes; and the corresponding reversed phenomenon (APIS-R). Current evidence suggests retailers deploy these pricing practices despite menu costs and potential consumer concerns. There is also evidence that inflation is only a partial contributor to the phenomena. These point to possible strategic intent driving these retail pricing practices. However, there are only a few papers in the domain, and none specifically address the cross-sectional and longitudinal variations. Further, existing results are mostly based on a single retailer, limited products, short time span, and legacy datasets dating back to the 1980s and 1990s, leaving their current relevance unsettled. Recent papers also question if small price changes are measurement artifacts. This dissertation addresses these gaps by analyzing several large contemporary datasets – a scanner dataset with more than 79 billion price observations and a matching consumer panel dataset with more than 50,000 participating panelists. Our key results imply the pricing practices can be retailers’ strategic responses to the cognitive tasks faced by consumers. Chapter 1 is a general introduction to the thesis. Chapter 2 sets up the fundamentals of the phenomena and reports robust evidence of APIS and APIS-R across the retail price spectrum. Chapter 3 examines the cross-sectional variations of the phenomena and finds that APIS and APIS-R are associated with product characteristics such as purchase frequency and category price level, as well as retail format such as HILO or EDLP. Chapter 4 explores the longitudinal variations and finds that business cycles are a major time-varying factor influencing retail practices of APIS and APIS-R. Chapter 5 concludes with reflections on the findings, implications for theory and practice, limitations, and suggestions for future studies. / Dissertation / Candidate in Philosophy / This dissertation studies asymmetric pricing in the small (APIS), where small price increases outnumber small price decreases, the asymmetry disappearing for larger price changes; and the corresponding reversed phenomenon (APIS-R). There are only a few papers in the domain, and none explain their cross-sectional and longitudinal variations. Existing results are mostly based on a single retailer, limited products, short time span, and legacy datasets dating back to the 1980s and 1990s, leaving their current relevance unsettled. Recent papers also question if small price changes are measurement artifacts. This dissertation addresses these gaps by analyzing several large contemporary datasets. The research finds robust evidence of both APIS and APIS-R in the retail price spectrum, and provides explanations for their cross-sectional variation, across products and retailers, as well as longitudinal variations, across business cycles. The results indicate the pricing practices can be retailers’ strategic responses to the cognitive tasks faced by consumers.

Application mobile devient un canal important de l'accès internet mobile. Trois groupes d'utilisateurs finaux affiliés avec deux plates-formes bifaces sur le marché d'applications mobiles ont attiré une attention considérable. App store (App-store) est une plate-forme de distribution de l'application connectée avec les développeurs et les utilisateurs. Plateforme de publicitaire (Ad-store) fournit des services de publicité pour les annonceurs grâce à des applications de développeurs. Sur ce marché, les développeurs, les annonceurs et les utilisateurs sont trois groupes d'utilisateurs finaux. Le marché de l'application mobile est un marché biface compliqué. Il y a des externalités de réseau étendues et interactives. L’étude se concentre sur les stratégies de tarification pour la plate-forme App-store. L'App-store et Ad-store sont les deux plates-formes bifaces. L’App-store partage les revenus des ventes d'applications avec les développeurs. L'Ad-store partage les revenus publicitaires avec les développeurs. La plate-forme App-store met en oeuvre la tarification asymétrique côté développeur et côté utilisateur. Côté développeur est le côté de la subvention ainsi que du côté des recettes pour la plateforme App-store. Le cout d'achat de l'appareil mobile est une déterminante particulière de tarification. Les redevances d'adhésion sont négligeables dans ce marché et les redevances d'utilisation sont réalisables. C'est un duopole sur le marché des applications mobiles. Le modèle des ventes d'appareils mobiles d'Apple et le modèle d'in-app publicité de Google sont extrêmement réussis. App-store, Ad-store et les appareils mobiles sont les trois points de génération de profits. / Mobile app is becoming an important mobile internet access channel. Three groups of end users affiliated with two Two-sided platforms in the mobile app market have attracted considerable attention. App store platform (App-store) is an app distribution platform connected with developers and users. App ad platform (Ad-store) supplies advertising services for advertisers through developers’ apps. Developers, users and advertisers are end users. Mobile app market is a complicated two-sided market. There are widespread and interactive network externalities. The study focuses on the pricing strategies for the app store platform. App-store shares paid app sales and in-app purchase revenues with developers. Ad-store shares in-app advertising revenues with developers. The App-store platform implements asymmetric pricing to developer side and user side. Developer side is the subsidy side as well as the revenue side for App-store platform. Mobile device purchasing cost constitutes a particular App-store platform pricing determinant. Membership fees are negligible in the mobile app market. Usage fee is workable. It is a duopoly in the mobile app market. Apple and Google are the two giants with distinct business models. Both Apple’s mobile device sales model and Google’s in-app advertising model are extremely successful. App-store, Ad-store and mobile devices are the three key profit makers in this market. Vertical integration inside this ecosystem will generate considerable revenues. Chinese users have higher price elasticity of demand and they are particularly sensitive to the app prices when compared with the French.