Schoenle, Raphael S.; Auer, Raphael A. - Department of Economics, International Business School, … - 2013
In this paper, we first document that two predictions of the heterogeneous firm version of the Dornbusch (1987) pricing model are confirmed in micro data on US import prices: while the rate at which a firm reacts to changes in its own cost is U-shaped in market share, the rate at which it reacts...
