Menu costs and dynamic duopoly

Kazuko Kano*

*この研究の対応する著者

研究成果: Article査読

7 被引用数 (Scopus)

抄録

Abstract Examining a state-dependent pricing model in the presence of menu costs and dynamic duopolistic interactions, this paper claims that the assumption regarding market structure is crucial for identifying the menu costs for price changes. Prices in a dynamic duopolistic market can be more rigid than those in more competitive markets, such as a monopolistic-competition market. Therefore, the estimates of menu costs under monopolistic competition are potentially biased upward due to the price rigidity from strategic interactions between dynamic duopolistic firms. By developing and estimating a dynamic discrete-choice model with duopoly to correct for this potential bias, this paper provides empirical evidence that dynamic strategic interactions, as well as menu costs, play an important role in explaining the observed degree of price rigidity in weekly retail prices.

本文言語English
ページ(範囲)102-118
ページ数17
ジャーナルInternational Journal of Industrial Organization
31
1
DOI
出版ステータスPublished - 2013
外部発表はい

ASJC Scopus subject areas

  • 労使関係
  • 航空宇宙工学
  • 経済学、計量経済学
  • 経済学、計量経済学および金融学(その他)
  • 戦略と経営
  • 産業および生産工学

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