Recent works suggest that convenient prices that match monetary denominations exhibit above-average price rigidity and … prices. This finding confirms that price rigidity can be in part explained by the use of cash to pay convenient prices …

a large empirical literature from the 1950's and 60's, that it is necessary to distinguish the response of price to an … two models that can potentially explain these findings. Both break the link between price and marginal cost, thereby … second is driven by firms pricing to limit non-price competition within their market …

model illustrates how alternating periods of price rigidity and flexibility can arise in such a setting, along with rapid … must be cognizant of convenience's role in effecting above-average price rigidity …

This paper investigates the relationships between the degree of price stickiness (inflexibility), the variability of … that there exists, in general, a critical degree of price inflexibility below which increased inflexibility of prices …

Macroeconomic models often generate nominal price rigidity via menu costs. This paper provides empirical evidence that … facts: (1) price points, embodied in nine-ending prices, account for approximately two-thirds of prices; and (2) at the … that nests roles for menu costs and price points and estimate model variants. Excluding the two facts yields a …

with above-average price rigidity …