search query: @author Sheshinski, E. / total: 7
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| Author: | Sheshinski, E. Weiss, Y. |
| Title: | Staggered and synchronized price policies under inflation: the multiproduct monopoly case |
| Journal: | Review of Economic Studies
1992 : APR, VOL. 59(2):199, p.331-359 |
| Index terms: | PRICE POLICY INFLATION MONOPOLY MULTIPRODUCT COMPANIES STEADY STATE MODELS INTEREST RATES |
| Language: | eng |
| Abstract: | The optimum pricing policies of a multiproduct monopoly are analyzed in the presence of inflation and fixed costs of nominal price changes. It is shown that with positive interactions in the profit function and costs of price adjustments that are independent across products, staggering is unlikely. Depending on initial conditions, a firm may follow a staggered steady state or a synchronized steady state path. But the former is locally unstable while the latter is attained from a broad set of initial conditions. For a small rate of interest the staggered policy is optimal if the interaction in profits is negative. |
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