competitive sectors—separately parameterized to match the same microdata on price flexibility—the oligopoly economy features a … parameters, output responses are five times larger. An oligopoly economy also (i) requires smaller menu costs and idiosyncratic … rationale for positive menu costs: in an oligopoly firms prefer a degree of rigidity to complete flexibility. Quantitatively …

tractable model of oligopolistic competition and sticky prices and derive closed-form expressions for the pass-through of … the pass-through of idiosyncratic costs is incomplete at 70% and independent of the degree of sector-price-stickiness. The … pass-through of common costs declines with price stickiness, from nearly complete in flexible-price sectors to below 70% in …

quantitative theory consistent with these empirical observations, banks' lending market power is determined in equilibrium and is a …