Multi-sector sticky price models have surprising implications when durable goods have flexible prices. While in actual … flexible price industry for which the comovement problem is relevant. The underlying reason for the comovement problem is the …

setting up a pricing formula. Once the capital stock is chosen,the right price to charge the buyer is marginal cost. But the … seller. If the seller can achieve a high price by deliberately under-investing and driving up marginal cost, there will be … cost. Such a contract or policy will make the price, in the sense of the revenue of the seller per unit of output, appear …

I examine price markups in monopolisticly-competitive markets that experience fluctuations in demand because the …

We explore the role of strategic price-discrimination by retailers for price determination and inflation dynamics. We … seek out low-priced products both across brands and across time. Shoppers always pay the lowest price available, the "best … price". Retailers in this setting optimally choose long periods of constant regular prices punctuated by frequent temporary …

. Trade policy provides a source of exogenous price variation to assess the validity of this prediction: higher tariffs should …

Temporary price reductions (sales) are common for many goods and naturally result in large increase in the quantity … neglect dynamics, may overestimate price sensitiveness by up to a factor of 2 to 6 …

and referral agencies (R&Rs) in some markets. R&Rs provide consumers with information on availability, price, and … information reduces price dispersion, maximum price, and average price. With this model we examine empirically the effects of R … price dispersion and lower maximum prices. There is also some evidence that markets with R&Rs have lower average prices …