Berardi, Nicoletta; Eife, Thomas; Gautier, Erwan - In: Applied Economics 46 (2014) 23, pp. 2766-2782
This article studies firms' price-setting decision during a currency changeover. Buyers' difficulties with the new nominal price level may create incentives to raise prices temporarily but doing so comes at the risk of damaging a seller's standing as a fair retailer. We model firms' trade-off...