Dynamic Oligopoly and Price Stickiness

• 成果类型: Article
• 署名作者: Wang, Olivier; Werning, Ivan
• 署名单位: New York University; Massachusetts Institute of Technology (MIT)
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20201739
• 发表日期: 2022
• 页码: 2815-2849
• 关键词: multiproduct firms; phillips-curve; menu costs; RIGIDITY; MODEL; COMPETITION; adjustment; inflation; demand; shocks

摘要

How does market concentration affect the potency of monetary policy? To address this question we embed a dynamic oligopolistic game into a general-equilibrium macroeconomic model. We provide a sufficient-statistic formula for the response to monetary shocks involving demand elasticities, concentration and markups. We discipline our model with evidence on pass-through and find that higher concentration amplifies nonneutrality and stickiness. We isolate strategic effects from oligopoly by comparing our model to one with naive firms. We derive an exact Phillips curve featuring novel higher-order terms, but show that a standard New Keynesian one recalibrated with higher stickiness provides an excellent approximation.