typically assumed ad-hoc in customer market and brand switching cost models. A central result of the paper is that deep habits …

This paper proposes a theory of price rigidity consistent with survey evidence that firms stabilize prices out of … fairness to their consumers. The theory relies on two psychological assumptions. First, customers care about the fairness of … rigid. Embedded in a simple macroeconomic model, our pricing theory produces nonneutral monetary policy, a short …

We study habitual brand loyalty, one of the earliest empirically-studied forms of switching costs and a classic source … tighten nonparametric bounds on the extent of brand loyalty in choice panel data. We also prove that the canonical dynamic … of several large consumer goods categories show that brand loyalty accounts for at least 10.8% but no more than 72.2% of …

branded equivalent, while the retailer's margin on the national brand is an upper bound on the retailer's marginal handling … cost for both the brand and private label versions. We find that lower bounds on the 'full' markup ratio range from 3 …