Sheshinski, Eytan; Tishler, Asher; Weiss, Yoran - 1981
The menu-cost model (Sheshinski-Weiss, 1977) demonstrated that in the presence of fixed price adjustment costs, monopoly firms who face an inflationary trend in rival prices will adjust their nominal price level periodically, following an (S,s) policy in real price space. This paper tests the...