Experimental Data: Price Perceptions After Euro Adoption

Description

We present data on whether inviduals can discern conversion-driven price hikes in the situation of simulteneously using two currencies. A sample of 296 subjects are presented with a shopping receipt with prices of individual items in both Euro and Bulgarian leva, as well as the fixed exchange rate between the two currencies; and then asked to state their preference in paying the original or the euro-converted price. However, conversion is imperfect, with the price in Euro being slightly higher (3-8% in different conditions). We also measure their trust in the merchant as well as various demographic and behavioral factors such as age, gender, usage of online media, trust in institutions and others. The dataset can be used to study how populations will react to conversion-induced inflation in countries that change their currency to a new one, such as the prospective Eurozone members. Data was collected in early 2023 among a sample of Sofia University students and amid public discussion and planning about the adoption of the Euro. Key findings indicate that small conversion errors on the upside go unnoticed by individuals, which is a mechanism for generating inflation pressures at the macroeconomic level.

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