Álvarez, Luis J. (contributor); Burriel, Pablo (contributor) - 2005
price changes are decreasing. This means that a firm will have a lower probability of changing its price the longer it has … kept it unchanged. This result is at odds with standard models of price setting. Here a simple explanation is proposed …: decreasing hazards may result from aggregating heterogeneous price setters. We show analytically the form of this heterogeneity …