PRICE RESPONSE, ASYMMETRIC INFORMATION AND COMPETITION

• 成果类型: Article
• 署名作者: Sherman, Joshua; Weiss, Avi
• 署名单位: University of Vienna; Bar Ilan University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12178
• 发表日期: 2015
• 页码: 2077-2115
• 关键词: gasoline prices; consumer search; sticky prices; local market; rise faster; RIGIDITY; adjustment; feathers; BUSINESS; rockets

摘要

We compare predictions from a theoretical model based on the structure of the main outdoor retail market in Jerusalem with the results of an empirical analysis of price response to changes in cost. We find that firms without adjacent competition exhibit both upward and downward price rigidity, an outcome we ascribe to asymmetric information between the consumer and the firm. Given that previous studies have focused on downward price rigidities of firms with market power, our findings highlight the importance of accounting for transitory information asymmetries between the consumer and the firm when studying price rigidity.