Počet záznamů: 1

Rationally inattentive seller: sales and discrete pricing

  1. 1.
    0342781 - NHU-N 2011 RIV CZ eng J - Článek v odborném periodiku
    Matějka, Filip
    Rationally inattentive seller: sales and discrete pricing.
    CERGE-EI Working Paper Series. Roč. 20, č. 1 (2010), s. 89-146 ISSN 1211-3298
    Grant CEP: GA MŠk LC542
    Výzkumný záměr: CEZ:AV0Z70850503
    Klíčová slova: rational inattention * nominal rigidity * sales
    Kód oboru RIV: AH - Ekonomie
    http://www.cerge-ei.cz/pdf/wp/Wp408.pdf http://www.cerge-ei.cz/pdf/wp/Wp408.pdf

    This paper presents a model of a rationally inattentive seller responding to shocks to unit input cost. The model generates price series simultaneously exhibiting all three of the following features that can be found in the data. 1) Prices change frequently. 2) Responses of prices to aggregate variables are delayed. 3) Prices move back and forth between a few rigid values. Discrete pricing arises even if the unit input cost varies in a continuous range. Results of the model also agree with the evidence that reductions in price, e.g. sales, are usually short-lasting and that the highest price in a sample tends to be the most quoted price. Discrete and asymmetric pricing is a seller's optimal response to his limited information capacity. Moreover, the model provides rationale for faster responses to aggregate shocks in industries with more volatile idiosyncratic shocks as well as for a steeper Philip's curve in less stable aggregate conditions.
    Trvalý link: http://hdl.handle.net/11104/0185414
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