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economics

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error in price indexing

  • Wholesale price indexes for United States, Great Britain, Germany, and France, 1790–1940.
    In price index: Adjusting for biases

    …they may be based on list prices rather than actual transactions prices. List prices probably are changed less frequently than the actual prices at which goods are sold; they may represent only an initial base of negotiation, a seller’s asking price rather than an actual price. One study has shown…

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