Rationally inattentive seller: sales and discrete pricing
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F16%3A00461428" target="_blank" >RIV/67985998:_____/16:00461428 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/16:00468728
Result on the web
<a href="http://dx.doi.org/10.1093/restud/rdv049" target="_blank" >http://dx.doi.org/10.1093/restud/rdv049</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1093/restud/rdv049" target="_blank" >10.1093/restud/rdv049</a>
Alternative languages
Result language
angličtina
Original language name
Rationally inattentive seller: sales and discrete pricing
Original language description
Prices tend to remain constant for a period of time and then jump. In the literature, this “rigidity is usually interpreted to reflect a cost of adjusting prices. This article shows that price rigidity can alternatively reflect optimal price setting when there are no adjustment costs, namely, if the seller is rationally inattentive. The model generates non-trivial pricing patterns that are consistent with the data and that are hard to explain with the traditional adjustment-cost model. In particular, prices are adjusted frequently but move back and forth between a few given values, hazard functions are downward sloping, and responses to persistent shocks are sluggish. These results are obtained in a model that implements rational inattention without simplifying assumptions on the functional forms of the processed signals.
Czech name
—
Czech description
—
Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—
Result continuities
Project
<a href="/en/project/GPP402%2F11%2FP236" target="_blank" >GPP402/11/P236: Implications of Rational Inattention</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Review of Economic Studies
ISSN
0034-6527
e-ISSN
—
Volume of the periodical
83
Issue of the periodical within the volume
3
Country of publishing house
GB - UNITED KINGDOM
Number of pages
31
Pages from-to
1125-1155
UT code for WoS article
000381273900008
EID of the result in the Scopus database
2-s2.0-84991380391