In the aftermath of the European sovereign debt crisis (2009-2014), the management of expectations has risen in importance. However, policy responses have emphasized the management of fiscal spending without examining the impact changes in the business confidence have on the economy. This paper...

This paper investigates the effect of sales and promotions on the pricing decisions of firms by providing a novel theoretical model where firms face menu costs when adjusting their price and offer items on sale to attract bargain hunters. It is demonstrated that in a recession, the frequency of...

In the aftermath of the European sovereign debt crisis (2009–2014), the management of expectations has risen in importance. However, policy responses have emphasized the management of fiscal spending without examining the impact changes in the business confidence have on the economy. This...