Dynamic pricing and imperfect common knowledge
نویسندگان
چکیده
منابع مشابه
Optimal Monetary Policy with Imperfect Common Knowledge
We study optimal nominal demand policy in a flexible price economy with monopolistic competition where firms have imperfect common knowledge about the shocks hitting the economy. Information imperfections emerge endogenously because firms are assumed to have finite (Shannon) capacity to process information. We then ask how policy that minimizes a quadratic objective in output and prices depends...
متن کاملSimple Policies for Dynamic Pricing with Imperfect Forecasts
We consider the ‘classical’ single product dynamic pricing problem allowing the ‘scale’ of demand intensity to be modulated by an an exogenous ‘market size’ stochastic process. This is a natural model of dynamically changing market conditions. We show that for a broad family of Gaussian market size processes, simple dynamic pricing rules that are essentially agnostic to the specification of thi...
متن کاملImperfect Common Knowledge and the Effects of Monetary Policy ∗
This paper reconsiders the Phelps-Lucas hypothesis, according to which temporary real effects of purely nominal disturbances result from imperfect information about the nature of these disturbances. This explanation for the real effects of monetary policy is often dismissed on the ground that the Lucas (1972) model predicts only highly transitory effects on real activity, and none at all insofa...
متن کاملImperfect Common Knowledge of Preferences in Global Coordination Games∗
I study a simple global game, in which I relax the assumption that preferences are common knowledge. I show that with higher-order uncertainty regarding preferences, players can at best coordinate on the risk-dominant equilibrium, regardless of whether information about fundamentals is common or private. The example also suggests that the strength of the coordinating effect of public informatio...
متن کاملImperfect Knowledge, Liquidity and Bubbles
This paper demonstrates that insufficient liquidity, in the form of a shortage of safe assets that are useful as collateral in facilitating exchange, can lead to substantial movements in asset prices. There is a single asset that yields a positive payoff stream and can be traded in a centralized market. The asset can also be used to facilitate exchange in decentralized, or over-the-counter, tra...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2008
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2007.12.008