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 …

Accuracy of cost accounting systems is a central issue in management accounting theory and practice. Over time a large …

Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating … third equation, which endogenizes costs. We implement the model using data for eight European airlines from 1976-1994, and … show that the treatment of endogenous costs has important implications for the measurement of price-cost margins and the …