Business cycles have historically been an important topic for behaviorally orientedeconomists. The concept of an economic and financial cycle based on interlocking mechanismsleading from the recession to the boom was developed in the 18th and 19th century. The earlybehavioral economics of the...

The dynamic response of prices and mark-ups to economic shocks play a crucial role in macroeconomics. We explore the role that market concentration plays in determining the responsiveness to different shocks. Using a model of oligopolistic competition we show that the sensitivity of prices and...