Despite its centrality to the topic, very little attention has been paid to the topic of price changes. Indeed, for the most part, organisations operate under the myth of costless price changes. This article broadens the definition of the costs of changing price and then presents strategic...

We offer the first direct evidence of an implicit contract in a goods market. The evidence comes from the market for Coca-Cola. Since implicit contracts are unobservable, we adopt a narrative approach to demonstrate that the Coca-Cola Company left a written evidence of the implicit contract with...

This paper considers the impact of 'food scares', predominately concerns relating to BSE, on UK beef prices at retail, wholesale and producer levels over the 1990s. Acknowledging the co-movement that exists between prices in the meat marketing chain, we use a co-integrating framework, the...

Using data from three sources (a laboratory experiment, a field study, and a large US supermarket chain), we document a surprising asymmetric behavior of 9-ending prices: they are more rigid upward, but not downward, in comparison to non 9-ending prices. The data from the lab experiment and the...

Market price cointegration is a critical issue in Nepalese vegetable industry. This study intended to analyze the market price cointegration of tomato and its effect on Nepalese farmers, using secondary monthly time series of wholesale price data (since 2000 to 2010) of the Government of Nepal....

Theoretical explanations for price stickiness used in businesses cycle models are diverse (e.g., information processing delays, rational inattention and fair pricing), with each theory resulting in a different implication for inflation dynamics. Using an autoregressive conditional binomial...

This paper explores optimal monetary policy when current account dynamics is taken into consideration in a sticky-price intertemporal optimising model. It investigates how monetary policies affect current account movement in a two-country model. The main issues addressed include: 1) what factors...

Our experiments refine and extend the work of Fehr and Tyran (2001), who suggest that money illusion can contribute significantly to nominal inertia in strategically complementary environments. By controlling for strategic uncertainty, visual focal points and cognitive load we find that...

We offer the first direct evidence of an implicit contract in a goods market. The evidence comes from the market for Coca-Cola. Since implicit contracts are unobservable, we adopt a narrative approach to demonstrate that the Coca-Cola Company left a written evidence of the implicit contract with...