Price Setting in Forward-Looking Customer Markets

Pricing
Written By Rowdy Ferret Design

Price Setting in Forward-Looking Customer Markets (with Emi Nakamura)

Journal of Monetary Economics, 58(3), 220-233, April 2011.

Technical Appendix -- Firm Price Commitments

If households form habits in individual goods, firms want to commit to low prices in the future but gouge consumers in the present. In this setting, firms benefit from “committing to a sticky price.”

Rowdy Ferret Design

Oakland based web designer and developer.

Loves long walks in the woods and barbeque.

http://rowdyferretdesign.com
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