Ray, Sourav; Chen, Haipeng; Bergen, Mark; Levy, Daniel - EconWPA - 2005
asymmetric in the small but symmetric in the large, when retailers face costs of price adjustments. Such retailers will not … adjust prices for small changes in their costs. Upstream manufacturers then see a region of inelastic demand where small … larger changes, this asymmetry at wholesale vanishes as the costs of changing prices are compensated by increases in …