thus allows for better intertemporal price discrimination. Assigning inventory control to a manufacturer is also shown to …

This paper analyzes the optimal adjustment strategy of an inventory-holding firm facing price- and quantity … costlessly adjusted, and the later model that includes price- and quantity-adjustment costs, but rules out inventory holdings. It …

In a partial equilibrium setting without price uncertainty, the balanced-budget substitution of an ad valorem tax on … competitive market characterised by uncertainty about the commodity price, if firms can respond to the revelation of demand …

overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price … environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local … (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high …

It has been shown that extending the Calvo model to account for the heterogeneity in price stickiness suggested by the … micro-evidence significantly improves the performance of the model. In the new model, price-changing firms are chosen …

This paper identifies the mechanism through which financial crises exert long-term negative effects on output. Theory …