- because constant price changes can ultimately be very, very expensive. And they should consider how to communicate those price …

In this paper, we show that a simple model of smoothly state-dependent pricing generates a distribution of price … assumption: price adjustment is more likely when it is more valuable. The constant probability model (Calvo 1983) and the fixed … dependence. The fixed menu cost model is inconsistent with the evidence both because it never generates small price adjustments …

inflation, in which only the intensive margin (the size of price increases) adjusts in response to changes in demand and supply …? We would like to emphasize that our highly disaggregated consumer price data for the Euro area, consisting of 280 … commodity categories, strongly suggests that price increases (inflation) are influenced not only by aggregate trends but also by …

individual-goods price adjustments, have stock returns that are always positively correlated with inflation. The cross …-sectional dispersion in this correlation is almost negligible, even though firms have very diverse micro-level pricing behavior. Because in … larger than in the model, and that correlations are negative about half the time. Furthermore, and also at odds with sticky-price …

We use micro level retail price data from convenience stores to study the link between 0-ending price points and price … findings suggest that price adjustment barriers associated with round prices are strong enough to cause a systematic delay in … price adjustments even in a period of a runaway inflation, when 85 percent of the prices change every month. …

This paper investigates how financial market imperfections and the frequency of price adjustment interact. Based on new … frictions changes profits and the price distribution of firms compared to a model without financial frictions. Our results …. Moreover, in response to aggregate shocks, aggregate price rigidity moves substantially, the response of inflation is dampened …

to re-examine the relationship between price dispersion and inflation. Although existing evidence is mixed, we find … eventually increasing. Finally, average price duration and dispersion are lowest in the bazaar. This is intuitive, since menu and …

This paper evaluates the predictions of different price setting theories using a new dataset constructed from a large … on both price realizations and expectations. Aggregating the price data we find clear evidence in favor of state …-dependence; for periods of relatively high and volatile inflation not only the size of price changes (intensive margin) but also the …

Macroeconomists have traditionally ignored the behavior of temporary price markdowns ("sales") by retailers. Although … sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered … out. We challenge this view. First, using the 1996 - 2012 data set of the U.K. CPI monthly price quotes, we document a …