This article uses the multinomial modeling technique (Batchelder 1998) to decompose the brand-switching matrix of the RLZ model and produces conditional probabilities for alternative decision outcomes (Rust, Lemon, and Zeithaml 2004; Rust, Lemon, and Narayandas 2005). It then links the probabilities...

This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output growth and staggered nominal price and wage contracts. Our analysis shows that trend inflation has important effects on the economy when combined with nominal contracts and real...