Xia, Tian; Li, Xianghong - In: Journal of Agricultural and Resource Economics 35 (2010) 2
We propose consumption inertia as a new explanation for asymmetric price transmission. Inertia in consumer demand … decreasing prices in response to lower wholesale prices. Thus, consumption inertia can cause asymmetries in price transmission … whereby retailers are more willing to change their prices, and change them more quickly, in response to wholesale price …