Etro, Federico; Rossi, Lorenza - Dipartimento di Economia, Università Ca' Foscari Venezia - 2014
We reconsider the New Keynesian model with staggered price setting when each market is characterized by a small number of firms competing in prices à la Bertrand rather than a continuum of isolated monopolists. Price adjusters change their prices less when there are more firms that do not...