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We give a thorough analytic characterization of a large class of sticky-price models where the firm's price setting behavior is described by a generalized hazard function. Such a function provides a tractable description of the firm's price setting behavior and allows for a vast variety of...
Persistent link: https://www.econbiz.de/10012481629
Rankings have become increasingly popular on various markets, e.g. the market for study programs. We analyze their welfare implications. Consumers have to choose between two goods of unknown quality with exogenous presence or absence of an unbiased informative ranking. The existence of the...
Persistent link: https://www.econbiz.de/10012457583
power. In those situations, governments could attempt to regulate the market or to increase competition. We provide the … first experimental evidence on the effect of increased competition on prices and quality relying on an intervention that …
Persistent link: https://www.econbiz.de/10012458610
policy analysis, researchers should use a menu cost model like ours or at least a third, theory-based shortcut: set the Calvo …
Persistent link: https://www.econbiz.de/10012464255
Standard models used for monetary policy analysis rely on sticky prices. Recently, the literature started to explore also nominal debt contracts. Focusing on mortgages, this paper compares the two channels of transmission within a common framework. The sticky price channel is dominant when...
Persistent link: https://www.econbiz.de/10012456066
We show that demand uncertainty leads to vertical product differentiation even when consumers are homogeneous. When a firm anticipates that its inventory or capacity may not be fully utilized, product variety can reduce its expected costs of excess capacity. When the firm offers a continuum of...
Persistent link: https://www.econbiz.de/10012468099
under competition with non-deceptive counterfeiting and deceptive counterfeiting, respectively, as well as under monopoly …
Persistent link: https://www.econbiz.de/10012459877
This paper presents theory and evidence from highly disaggregated Chinese data that tariff reductions induce a country …
Persistent link: https://www.econbiz.de/10012458344
Using a general-equilibrium simulation model featuring nominal rigidities and monopolistic competition in product and … labor markets, this paper estimates the macroeconomic benefits and international spillovers of an increase in competition …, greater competition produces large effects on macroeconomic performance, as measured by standard indicators. In particular, we …
Persistent link: https://www.econbiz.de/10012468277
that would inject private-school competition and increase technical efficiencies without cream skimming. Conditioning …. However, by adding conditions like tuition constraints such as vouchers can reap the benefits of school competition without …
Persistent link: https://www.econbiz.de/10012469351