Abstract
ABSTRACT This study examines the price learning process of consumers, utilizing the huge real-life experiment conducted by 12 West-European countries in 2002: namely, the currency changeover to the euro. We find that the price knowledge of consumers has improved very slowly after the transition, and still after two years remains significantly worse than in the era of the national currency. This is most probably explained by the important role that nominal values play, both in the pricing strategies of firms and in the price learning process of consumers.
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