Cason, Timothy; Friedman, Daniel - In: Advances in Economic Analysis & Policy 2 (2002) 1, pp. 1020-1020
In our laboratory customer markets, sellers post price and buyers incur cost (controlled at zero, low and high values) when they switch to a new seller. Sellers' production costs follow various random walks in 28 sessions, each with 50-100 trading periods. We find that prices are sticky, and...