We build a structural econometric model of pricing substitutes with menu costs and apply it to quasi-experimental data … to estimate the share of physical menu costs (material and labor costs of price adjustment) in total menu costs. The data … aisles, and replacing the old stickers) with a digital one, thus eliminating physical menu costs. We estimate physical menu …

customers or incurring higher costs. Many classes moved online, leading to a lower-value offering without significant cost … as less fair than maintaining prices following an equivalent decrease in costs; (ii) price decreases following a product …

The purpose of this paper is to analyze an optimal pricing rule for the case in which the costs of price adjustment are … time dependent, and where those costs depend positively on the magnitude of the percentage price change. By means of … equilibrium level that would have obtained in the absence of costs of contemporaneous price adjustment. Under certain conditions …