A semi-classical model of price-level adjustment

Asymmetric Price Adjustment In a Menu-Cost Model

In this paper we demonstrate that the menu-cost model implies asymmetric price adjustment to nominal demand shocks and that the asymmetry is linked to the elasticity of demand and menu costs. These are tested using manufacturing and retailing panel data for the OECD countries. The empirical results give strong support to the menu-cost model. JEL Classification: E3, L16 * Comments from Fhahad Kh...

SERIE RE5ERRCH mEmORnnDR PRICE ADJUSTMENT IN A TWO-COUNTRY MODEL

Speed of price adjustment with price conjectures

We derive a measure of firm speed of price adjustment that is directly inversely related to market power and compare this to the measure derived by Martin (1993). However, both measures are incorrect when firms have non-zero price conjectural variations and treat competing price levels as exogenous. This is because Taylor series expansions of the demand function implicitly assume that firms inf...

A two-level discount model for coordinating a decentralized supply chain considering stochastic price-sensitive demand

In this paper, a discount model is proposed to coordinate pricing and ordering decisions in a two-echelon supply chain (SC). Demand is stochastic and price sensitive while lead times are fixed. Decentralized decision making where downstream decides on selling price and order size is investigated. Then, joint pricing and ordering decisions are extracted where both members act as a single entity ...

Semi-quantitative environmental impact assessment and sustainability level determination of coal mining using a mathematical model

Environmental impact assessment (EIA) has led to the dominance of planners on the natural environment of the regions, providing the possibility of continuously monitoring and controlling the status quo by management staff. In this regard, a new semi-quantitative model is presented for the EIA of the Eastern Alborz Coal Mining complex using the matrix method, and determining the corresponding im...