• Title of article

    Can small menu costs explain sticky prices?

  • Author/Authors

    Arthur Fishman، نويسنده , , Avi Simhon، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2005
  • Pages
    4
  • From page
    227
  • To page
    230
  • Abstract
    We develop a model in which even very small adjustment costs can lead to substantive price rigidity. We show that, facing a cost increasing shock, if firms expect competitors to keep prices unchanged, price rigidity may be a self-fulfilling prophesy.
  • Keywords
    Search , Small menu costs , Coordination failure , Price rigidity
  • Journal title
    Economics Letters
  • Serial Year
    2005
  • Journal title
    Economics Letters
  • Record number

    435661

    • Link To Document
    https://search.isc.ac/dl/search/defaultta.aspx?DTC=10&DC=435661