Recent theories suggest that consumers' search efforts are a function of prices and prices changes, respectively. This may help to explain the 'rockets and feathers' phenomenon often assigned to collusion – prices rise like rockets when costs increase and fall like feathers when costs...

Prices usually adjust much faster when costs increase than when costs decrease. The mechanism driving this Rockets-and-Feathers phenomenon is not well understood despite of ample empirical evidence for its existence.We use simple experimental markets with and without consumer search and either...

Consumers often complain that retail prices respond faster to increases in wholesale prices than to decreases. Despite many empirical studies confirming this "Rockets-and-Feathers" phenomenon for different industries, the mechanism driving it is not well understood. In this paper, we show that,...