generates price series imultaneously exhibiting all three of the following features that can be found in the data. 1) Prices … agree with the evidence that reductions in price, e.g. sales, are usually short-lasting and that the highest price in a … sample tends to be the most quoted price. Discrete and asymmetric pricing is a seller's optimal response to his limited …

explain substantial price underreaction to public information in corporate bond and stock markets. The key evidence is that …