We show that standard menu cost models cannot simultaneously reproduce the dispersion in the size of micro-price … changes and the extent to which the fraction of price changes increases with inflation in the U.S. time-series. Though the … Golosov and Lucas (2007) model generates fluctuations in the fraction of price changes, it predicts too little dispersion in …

Advertising often aims at creating and reinforcing brand differentiation, which should translate into reduced price … Linear Model that links own and others’ advertising in the category to brand price elasticity directly and indirectly through … categories shows that both own and all competitive advertising in the category lower price sensitivity for the average brand …