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We model the decisions of a multi-product firm that faces a fixed "menu" cost: once it is paid, the firm can adjust the price of all its products. We characterize analytically the steady state firm's decisions in terms of the structural parameters: the variability of the flexible prices, the...
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We model the pricing decisions of a multi-product firm that faces a fixed “menu” cost: once the cost is paid, the firm can adjust the price of all its products. We characterize analytically the steady state firm's decision in terms of the structural parameters: the variability of the...
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