Sychronization and Staggering in a Model of State-Dependent Pricing
We investigate the possibility of synchronized and staggered equilibria in a version of the Dotsey-King-Wolman state-dependent pricing model. Our paper contributes to a large literature that considers synchronization of price changes (see, for example, Ball and Cecchetti , Ball and Romer , Caminal , Lau , Bhaskar ). Models in this literature typically assume that firms engage in time-dependent pricing, changing their prices at fixed intervals, but choose the timing of adjustment relative to other firms. In this class of models, synchronization is usually an equilibrium, and much research has been devoted to understanding the circumstances under which a staggering equilibrium may also emerge. In our model, steady state equilibria involve staggering. We search for two-cycle equilibria (pure synchronization is a special case), but find that they are unlikely to arise in our setting. An important part of the explanation for this result is that, in general equilibrium, an individual firm's adjustment decision is not very responsive to changes in the adjustment decisions of other firms
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||11 Nov 2005|
|Date of revision:|
|Contact details of provider:|| Web page: http://comp-econ.org/Email: |
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sce:scecf5:456. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.