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Dynamic Pricing in a Frictional Product Market

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  • University of Pennsylvania
  • Guido Menzio

Abstract

I find that—when shocks are sufficiently persistent—prices are fully flexible.

Suggested Citation

  • University of Pennsylvania & Guido Menzio, 2007. "Dynamic Pricing in a Frictional Product Market," 2007 Meeting Papers 549, Society for Economic Dynamics.
    • Handle: RePEc:red:sed007:549
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    References listed on IDEAS

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    1. Daron Acemoglu & Robert Shimer, 1999. "Efficient Unemployment Insurance," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 893-928, October.
    2. Ken Burdett & Melvyn Coles, 2003. "Equilibrium Wage-Tenure Contracts," Econometrica, Econometric Society, vol. 71(5), pages 1377-1404, September.
    3. Fernandes, Ana & Phelan, Christopher, 2000. "A Recursive Formulation for Repeated Agency with History Dependence," Journal of Economic Theory, Elsevier, vol. 91(2), pages 223-247, April.
    4. Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
    5. Moen, Espen R, 1997. "Competitive Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 385-411, April.
    6. Margaret Stevens, 2004. "Wage-Tenure Contracts in a Frictional Labour Market: Firms' Strategies for Recruitment and Retention," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(2), pages 535-551.
    7. Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
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    Cited by:

    1. Pettersson, Billie & Hoffmann, Mikael & Andersson, David & Wändell, Per & Levin, Lars-Åke, 2012. "Utilization and costs of glucose lowering therapies following health technology assessment for the new reimbursement scheme in Sweden," Health Policy, Elsevier, vol. 108(2), pages 207-215.

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