competing products, the price of individual products tends to fall over the product lifetime. This holds true for more than 90 …% of the expenditure items underlying the U.K. consumer price index and has important normative implications. Constructing … a sticky price model featuring a product life cycle and rich amounts of heterogeneity, we explain how the optimal in …

A number of studies have evaluated the social welfare impact of price and income changes using equivalent incomes that … are computed at some reference price vector, and an aggregator with these equivalent incomes as arguments in place of a … social welfare function. This paper investigates the impact of the choice of the reference price vector on the results of …

, equilibrium allocations under price uncertainty are efficient in this constrained sense. Arrow-Debreu equilibria turn out to be …

Pass-through determines how consumers respond to taxes. We investigate the impact of imperfect price information on …-informed consumers. Pass-through is higher for the minimum price, paid by well-informed consumers, than for the average price, paid by … uninformed consumers. Moreover, pass-through to the average price is non-monotonic with respect to the number of sellers. An …