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We consider a market-for-lemons model where the seller is a price setter, and, in addition to observing the price, the …
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New Keynesian models of monetary policy assign no role to monetary aggregates, in the sense that the level of output, prices, and interest rates can be determined without knowledge of the quantity of money. We evaluate the empirical validity of this prediction by studying the effects of shocks...
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period then leaves some residual demand to future periods, and consumers who observe price under-cutting may correctly … anticipate en ensuing price war and therefore postpone their purchases. Accordingly, the interaction between the firms no longer …
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This paper examines the relation between prices in conventional stores and on the Internet. Main results from the theoretical analysis are i) we expect a discrete fall in prices in conventional stores as the share of the population with access to Internet reaches a critical level, ii) the...
Persistent link: https://www.econbiz.de/10001599969
To the surprise of many, price deviations between markets characterized by imperfect competition have often been little … lower transport costs are, in many cases, associated with greater price differentials between markets. The intuition is that … differentiation and costs of segmenting. -- price discrimination ; market integration ; law of one price …
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