Information-constrained state-dependent pricing
نویسندگان
چکیده
منابع مشابه
Information-Constrained State-Dependent Pricing∗
I present a generalization of the standard (full-information) model of statedependent pricing in which decisions about when to review a firm’s existing price must be made on the basis of imprecise awareness of current market conditions. The imperfect information is endogenized using a variant of the theory of “rational inattention” proposed by Sims (1998, 2003, 2006). This results in a one-para...
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We characterize optimal state-dependent pricing rules under various forms of infrequent information. In all models, infrequent price changes arise from the existence of a lump-sum “menu cost.” We entertain various alternatives for the source and nature of infrequent information. In two benchmark cases with continuously available information, optimal pricing rules are purely state-dependent. In ...
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In a packet-switched integrated-services network, the service provider can charge users a state-dependent price, which depends on the extent to which the network is congested. Alternatively, one can also charge users a long-term average price, which is set based on expected demand and capacity availability derived from prior experience at that time-of-day, but independent of instantaneous netwo...
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T is substantial literature documenting the presence of state-dependent utility with packaged goods data. Typically, a form of brand loyalty is detected whereby there is a higher probability of purchasing the same brand as has been purchased in the recent past. The economic significance of the measured loyalty remains an open question. We consider the category pricing problem and demonstrate th...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2009
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2009.06.014