Arbeitspapier
Overhead cost, price randomization, and price stickiness
This paper investigates price setting when firms produce with increasing returns and customers are imperfectly informed about prices but customers can search. It is shown that there exists a unique randomization equilibrium where each customer is offered a random price by each firm known to him. If the number of firms is fixed then the expected price to be paid by a customer responds countercyclically to variations of demand per customer and it remains invariant with respect to variations of the number of customers. This price behavior corresponds well with new evidence on price behavior.
- Sprache
-
Englisch
- Erschienen in
-
Series: Diskussionsbeiträge - Serie I ; No. 273
- Klassifikation
-
Wirtschaft
- Thema
-
increasing returns
price stickiness
search
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Zink, Helmut
- Ereignis
-
Veröffentlichung
- (wer)
-
Universität Konstanz, Fakultät für Wirtschaftswissenschaften und Statistik
- (wo)
-
Konstanz
- (wann)
-
1994
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Zink, Helmut
- Universität Konstanz, Fakultät für Wirtschaftswissenschaften und Statistik
Entstanden
- 1994
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