Monopolistic price setting and supply rigidities in a disequilibrium framework

Arbeitspapier

In the paper, a model of the firm with a delayed adjustment of prices and supply is analyzed. Prices and supply are determined under uncertainty about the location of the demand curve. Three models are distinguished: a price setting with predetermined supply, supply determination with predetermined prices, and a simultaneous price and supply determination. It is shown that many of the results of the deterministic case can be transferred to this stochastic model set-up. The deterministic model is included as a special case of the presented model. However, the model here allows for supply rigidities and labour hoarding and permits the analysis of price adjustment and rationing situations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionspapier ; No. 12

Classification and Topics

• Classification: Wirtschaft
• Subject: monopolistic price setting ; adjustment delays

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Smolny, Werner
• Event: Veröffentlichung
• (who): Universität Konstanz, Forschungsschwerpunkt Internationale Arbeitsmarktforschung
• (where): Konstanz
• (when): 1994

Further information

• Handle: http://hdl.handle.net/10419/92450
• Last update: 10.03.2025, 11:44 AM CET