Rockets and feathers: Understanding asymmetric pricing

Prices rise like rockets but fall like feathers. This stylized fact of many markets is confirmed by many empirical studies. In this article, I develop a model with competitive firms and rational partially informed consumers where the asymmetric response to costs by firms emerges naturally. In contrast to public opinion and past work, collusion is not necessary to explain such a result. Copyright (c) 2009, RAND.

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Year of publication:	2009
Authors:	Tappata, Mariano
Published in:	RAND Journal of Economics. - RAND, ISSN 0741-6261. - Vol. 40.2009, 4, p. 673-687
Publisher:	RAND

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008537183