Similar Search Results

A Theory of Price Adjustment Under Loss Aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2021

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers’ perceived utility losses from price increases are weighted more heavily than the perceived utility … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …

Persistent link: https://www.econbiz.de/10013315600

Costs of Managerial Attention and Activity as a Source of Sticky Prices : Structural Estimates from an Online Market

Ellison, Sara Fisher - 2017

We study price dynamics for computer components sold on a price-comparison website. Our fine-grained data — a year of hourly price data for scores of rival retailers — allow us to estimate a dynamic model of competition, backing out structural estimates of managerial frictions. The estimated...

Persistent link: https://www.econbiz.de/10012963386

Flexible Prices and Leverage

D'Acunto, Francesco - 2017

The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...

Persistent link: https://www.econbiz.de/10012962123

Price Changes - Stickiness and Internal Coordination in Multiproduct Firms

Letterie, Wilko H. - 2016

We assess empirically the micro-foundations of producers' sticky pricing behaviour. The intertemporal profit function considered accounts for various functional forms of menu costs. The focus is on the analysis of multiproduct plants, and the menu costs therefore also allow for economies of...

Persistent link: https://www.econbiz.de/10012998723

Time-Dependency in Producers' Price Adjustments : Evidence from Micro Panal Data

Nilsen, Øivind Anti - 2018

Existing micro evidence of firms' price changes tends to show a downward sloping hazard rate – the longer the price of a product has remained the same, the less likely it is that the price will change. Using a panel of Norwegian plant- and product-specific prices, we also find a downward...

Persistent link: https://www.econbiz.de/10012912662

Experimentation in Two-Sided Markets

Peitz, Martin - 2015

We study optimal experimentation by a monopolistic platform in a two-sided market. The platform provider is uncertain about the strength of the externality each side is exerting on the other. Setting participation fees on both sides, it gradually learns about these externalities by observing...

Persistent link: https://www.econbiz.de/10013022496

Measuring and Bounding Experimenter Demand

De Quidt, Jonathan - 2017

We propose a technique for assessing robustness of behavioral measures and treatment effects to experimenter demand effects. The premise is that by deliberately inducing demand in a structured way we can measure its influence and construct plausible bounds on demand-free behavior. We provide...

Persistent link: https://www.econbiz.de/10012952405

The Political Economy of Sin Taxes

Haavio, Markus - 2009

We analyse the determination of taxes on harmful goods when consumers have self-control problems. We show that under reasonable assumptions, the socially optimal corrective tax exceeds the average distortion caused by self-control problems. Further, we analyse how individuals with self-control...

Persistent link: https://www.econbiz.de/10013159702

Should We Subsidize Longevity?

Leroux, M.‐L. - 2009

This paper studies the design of the optimal non linear taxation in an economy where longevity varies across agents, and depends on three factors: longevity genes, health investment and farsightedness. Provided earnings, farsightedness and genes are correlated, governmental intervention can be...

Persistent link: https://www.econbiz.de/10012763911

Financial Constraints and Nominal Price Rigidities

Balleer, Almut - 2017

This paper investigates how financial market imperfections and the frequency of price adjustment interact. Based on new firm-level evidence for Germany, we document that financially constrained firms adjust prices more often than their unconstrained counterparts, both upwards and downwards. We...

Persistent link: https://www.econbiz.de/10012962670