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Business as usual: A consumer search theory of sticky prices and asymmetric price adjustment

Article ID Journal Published Year Pages File Type
5078213 International Journal of Industrial Organization 2012 6 Pages PDF
Abstract
► Firms may prefer not to change prices so as to avoid consumer search. ► This leads to price stickiness: prices do not change even when costs have changed. ► We present a model with these features and suggest additional implications.
Keywords
Asymmetric price adjustmentSEARCHSticky prices
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Business as usual: A consumer search theory of sticky prices and asymmetric price adjustment
Authors
Luís Cabral, Arthur Fishman,
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Journal
International Journal of Industrial Organization
Journal: International Journal of Industrial Organization
Related Categories
Asymmetric price adjustment
SEARCH
Sticky prices
Economics and Econometrics
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