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Rockets and feathers: Understanding asymmetric pricing

Tappata, Mariano

The Rand journal of economics, 2009-12, Vol.40 (4), p.673-687 [Periódico revisado por pares]

Malden, USA: Blackwell Publishing Inc

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  • Título:
    Rockets and feathers: Understanding asymmetric pricing
  • Autor: Tappata, Mariano
  • Assuntos: Competition ; Consumer choice ; Consumer economics ; Consumer equilibrium ; Consumer prices ; Economic models ; Feathers ; Industrial organization ; Marginal costs ; Market prices ; Price formation ; Price level changes ; Price rises ; Price shocks ; Price theory ; Pricing policies ; Product differentiation ; Production costs ; Studies
  • É parte de: The Rand journal of economics, 2009-12, Vol.40 (4), p.673-687
  • Notas: ArticleID:RAND84
    ark:/67375/WNG-2F05S5BL-S
    istex:593C8C3B5EF02591482BDCDE960AF2F5449E3133
    I am grateful to the editor, Mark Armstrong, and two anonymous referees for suggestions that have significantly improved the exposition of the article. This is a revised version of the first chapter of my dissertation. I would like to thank my advisors Hugo Hopenhayn and David K. Levine for great advice and support. I am also indebted to Florencia Jaureguiberry, Christine Hauser, Dan Ackerberg, Roberto Alvarez, David Rahman, and participants at the Midwest Economic Theory Meetings (Fall 2005) and seminars at various universities for helpful suggestions and discussion. Financial support from the University of California Energy Institute is greatly appreciated.
    ObjectType-Article-2
    SourceType-Scholarly Journals-1
    ObjectType-Feature-1
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  • Descrição: Prices rise like rockets but fall like feathers. This stylized fact of many markets is confirmed by many empirical studies. In this article, I develop a model with competitive firms and rational partially informed consumers where the asymmetric response to costs by firms emerges naturally. In contrast to public opinion and past work, collusion is not necessary to explain such a result.
  • Editor: Malden, USA: Blackwell Publishing Inc
  • Idioma: Inglês

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