We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …

This paper takes advantage of a natural experiment to examine the relationship between the price and saliency of health …

the minimum wage and to the micro patterns of price stickiness. For that purpose, we use a unique dataset of individual … price quotes collected to calculate the Consumer Price Index in France and we estimate a price rigidity model based on a … through to retail prices. -- Price stickiness ; minimum wage ; inflation ; restaurant prices …

the degree of price rigidity that is inherent to the price setting mechanism (intrinsic) and that which is due to the … price's driving variables (extrinsic). Using two data sets consisting of a large fraction of the price quotes used to … compute the Belgian and French CPI, we are able to assess the role of intrinsic and extrinsic price stickiness in explaining …

We study price-setting behavior in German firm-level survey data to infer the relative importance of supply and demand …

at a fixed price before an auction. In the "Buy-It-Now" format, the seller has the bargaining power and offers a price …

" - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage-price …

price rigidity. Reputation powerfully amplifies the positive effects of social preferences on contract enforcement by … interactions, suggesting that it may aggravate price rigidities. Surprisingly, reputation in fact weakens the wage and price …. -- Reputation ; reciprocity ; relational contracts ; price rigidity ; wage rigidity …