Paralyzed by Fear: Rigid and Discrete Pricing Under Demand Uncertainty.

We propose a new theory of price rigidity based on firms' Knightian uncertainty about their competitive environment. This uncertainty has two key implications. First, firms learn about the shape of their demand function from past observations of quantities sold. This learning gives rise to kinks in...

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Detalles Bibliográficos
Publicado en:Econometrica Vol. 88; no. 5; pp. 1899 - 1939
Autores principales: Ilut, Cosmin, Valchev, Rosen, Vincent, Nicolas
Formato: Artículo
Publicado: Wiley-Blackwell Sep2020
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Acceso en línea:Ver este registro en EBSCOhost