Explaining why prices do not immediately adjust to business cycles remains one of the most important unresolved questions in macroeconomics. When researchers ask managers for an explanation, their responses reveal a reluctance to vary prices for fear of quot;antagonizing customers.quot; However,...

In the context of subscription-based services, many technologies improve over time and service providers can provide increasingly powerful service upgrades to their customers, but at a launching cost, and the expense of the sales of existing products. We propose a model of technology upgrades...

Economists typically assume that demand curves are downward sloping. We present evidence that increasing the price of an item from $44 to $49 may increase unit demand by up to 30%. This effect is substantial, has broad application, is easily replicated, and contradicts the downward-sloping...