We propose a parsimonious framework for real rigidities, in the form of strategic complementarities, that can generate … featuring strategic complementarities require unrealistically volatile shocks to idiosyncratic productivity to be consistent … with pricing moments. We develop a simple menu-cost model with strategic complementarities along with idiosyncratic …

the firm has weak fundamentals and opacity, otherwise. Intuitively, strategic complementarities among the investors, which … environments with strategic complementarities, and provide a foundation for many empirical regularities found in practice …