Ray, Sourav; Chen, Haipeng (Allan); Bergen, Mark; Levy, … - 2005
Asymmetric pricing is the phenomenon where prices rise more readily than they fall. We articulate, and provide … empirical support for, a theory of asymmetric pricing in wholesale prices. In particular, we show how wholesale prices may be … adjust prices for small changes in their costs. Upstream manufacturers then see a region of inelastic demand where small …