Scale economies with regard to price adjustment costs and the speed of price adjustment in Australian manufacturing
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چکیده
منابع مشابه
Scale Economies with Regard to Price Adjustment Costs and the Speed of Price Adjustment in Australian Manufacturing
The standard quadratic price adjustment cost function makes no allowance for firm size or for scale economies. Incorporating quadratic price adjustment costs into the profit function, a firm’s speed of price adjustment is both shown to be a positive/negative function of its size when firms have scale economies/diseconomies with regard to these costs and to be a negative function of market power...
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A model of industry speed of price adjustment is derived from firm pricing behaviours. The model is applied to quarterly two-digit Australian manufacturing data for the period 1985:3 to 2002:3. Initially, the industry speed of price adjustment is treated as a function of structural cross-section variables. The results suggest that the industry speed of price adjustment is positively related to ...
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We study optimal price setting by a monopolist in an in nite horizon model with stochastic costs, moderate ination, and costly price adjustment. For realistic parameters, chosen to replicate observed frequencies of price changes, the model ts numerically several empirical regularities. In particular, price reductions are larger but less frequent than price increases, and prices respond consid...
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ژورنال
عنوان ژورنال: International Review of Applied Economics
سال: 2008
ISSN: 0269-2171,1465-3486
DOI: 10.1080/02692170701745895