Monopolistic price-setting behavior of information technology firms

Modelling the Heterogeneous Price Setting Behavior of Firms (DSGE Approach)

Despite the empirical evidence of the difference in the degree of price stickiness of goods and services, in the new standard Keynesian models, the same price stickiness is considered for all firms producing intermediate goods. In recent years, a new generation of pricing models has been introduced to simulate the heterogeneous price setting behavior in which, unlike standard pricing models, th...

Firms learning price in a monopolistic competition economic model

This paper aims to investigate the possibility for monopolistically competitive firms to set the price and the quantity of goods through a reinforcement learning approach. The model incorporates a set of firms that produce and sell differentiated goods in monopolistically competitive markets and households that supply different types of labor, purchase goods for consumption and hold money. The ...

The Threshold Reaction of Price Setting Behavior Indexes to Inflation Rate Changes: An Application of Price Micro Information to Understand the Changes of Price Rigidity Degree

In this paper we measure the price stickiness in Iran’s economy. More specifically, we use sub-aggregates data of consumer price index from 1990:3 to 2014:2 to investigate the analyze the frequency and size of price changes and test whether they are affected from the CPI variations. This is important as it determined how much the monetary authority can expect to have influence on the real ec...

Inflationary Expectations and Price Setting Behavior

I T is often said that expectations of future prices may a&c3 current prices or that inflationary expectations may get “built into the system” and make inflation difhcuit to stop quickly. An important empirical question in macroeconomics is whether there is anything to this story. Do prior expectations matter, and if so, how? This paper tries to answer this question. A simple theoretical model ...

Statistical Model And Estimation Of The Optimum Price For A Chain Of Price Setting Firms