Recent research and policy discussions have noted that the potentially increased competition among firms since the 1990 … Calvo price-setting assumptions imply the same reduced-form New Keynesian Phillips Curve (NKPC). Increased competition among … concerns about potential loss of market share. These effects are further dampened in an environment of more intense competition …

How does competition affect information acquisition of firms and thus the response of inflation and output to monetary … inattention and oligopolistic competition. In the model, rationally inattentive firms acquire information about the endogenous … oligopolistic competition increases monetary non-neutrality by up to 77% and amplifies the half-life of output response to monetary …

Competition can have opposite impacts on the inflation-output trade-off by increasing the real rigidity but lowering … of competition. Therefore, the effect of the competition is dominated by the decrease in nominal rigidity. Counterfactual … rigidity is small. Our results highlight the key role of price adjustment frequency in response to competition …