How should a firm price a new product for which little is known about demand? We propose a simple pricing rule: the … firm only estimates the maximum price it can charge and still expect to sell at least some units, and then sets price as …

A model is provided whereby a monopolist firm chooses to price its product at zero. This outcome is shown to be driven … price equilibrium can emerge. The paper shows that this outcome can be socially optimal and that, while a move from monopoly … to competition can result in a negative price equilibrium, this can be welfare reducing. The conclusion is that zero can …

The last decade has seen a burst of micro price studies. Many studies analyze data underlying national CPIs and PPIs …. Others focus on more granular sub-national grocery store data. We review these studies with an eye toward the role of price … setting in business cycles. We summarize with ten stylized facts: Prices change at least once a year, with temporary price …

charged to private payers after 1999. We find a downward trend in price for private pay patients in the 1990s and a rapid … the change in hospital market concentration. For example, the greatest price rises came from hospitals in monopoly and … cost increases due to the nursing staffing regulations are not large enough to account for the price increase, and the …

the price elasticity of demand for each observation and report the average price elasticity across all observations or … report the price elasticity of demand at the mean of the price variable. Policy makers rely on these average price elasticity … estimates for public health and revenue generation purposes. The use of an average price elasticity may yield misleading …

Though built with increasingly precise microfoundations, modern optimizing sticky price models have displayed a chronic … [2000]. This is an ironic finding, since Taylor [1980] and other researchers were motivated to study sticky price models in … standard view of the cyclical behavior of real marginal cost built into current sticky price macro models. Using both a small …

This paper presents evidence on the amount of price rigidity that exists in individual transaction prices. Using the … important findings are: 1.The degree of price rigidity in many industries is significant. It is not unusual in some industries … commodities, the correlation of price changes across buyers is very low. 3.There is no evidence that there is an asymmetry in …

responses to rivals' price advertising and find that small, non-advertising stores raise their prices of products advertised by … rivals beyond their baseline price increase, while larger, advertising stores raise by less their prices of rival …-advertised products. We find no reductions in price dispersion across stores with the introduction of price advertising. However, those …

volatility are high, few imports are pre-bought, the price of imports is determined by the realized real exchange rate, and a … purchased in the spot market, the price of imports is determined by the realized real exchange rate, and the relative PPP holds …-buying imports, reducing thereby the frequency of pricing to market, increasing the expected relative price of imports, reducing the …