American Economic Review Vol. 76 No. 4 1986
The Rigidity of Prices
Abstract
For many transactions, prices remain rigid for periods exceeding one year. Price rigidity is positively correlated with industry concentration. For several products, the correlation of price changes across buyers is low. The paper also investigates the relationship between price rigidity, price change, and the length of time a buyer and seller have been doing business. The evidence emphasizes the importance of non price rationing and the inadequacy of models in which price movements alone clear markets.
- Volume
- 76
- Issue
- 4
- Pages
- 637-658
- Sources
- bibtex:phds-export.bib