Arbeitspapier
Price-Setting Behavior with Menu Costs – Experimental Evidence
We experimentally test the price-setting behavior of firms in the Rotemberg (1982) model in order to explain puzzles in the New Keynesian Phillips curve (NKPC). By constructing categories and a quantitative measure that compare behavior with optimum we find heterogeneous price-setting behavior by degree of information acquired about the future. Subjects rarely use past information, but overweight their own past price. We study the impact of heterogeneous price-setting behavior on estimated theoretically derived and hybrid Phillips curves. We find support for features of both NKPCs in our findings at the micro level. But the hybrid NKPC has a superior fit.
- ISBN
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978-3-86788-496-9
- Language
-
Englisch
- Bibliographic citation
-
Series: Ruhr Economic Papers ; No. 439
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Monetary Policy
- Subject
-
Hybrid Phillips curve
experimental economics
behavioral macroeconomics
- Event
-
Geistige Schöpfung
- (who)
-
Orland, Andreas
Roos, Michael W. M.
- Event
-
Veröffentlichung
- (who)
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Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
- (where)
-
Essen
- (when)
-
2013
- DOI
-
doi:10.4419/86788496
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Orland, Andreas
- Roos, Michael W. M.
- Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Time of origin
- 2013
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Menu Costs, Posted Prices, and Multiproduct Retailers
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Menu costs at work: Restaurant prices and the introduction of the Euro
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Menu costs, multi-product firms, and aggregate fluctuations
Menu costs, multi-product firms, and aggregate fluctuations
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