Consumption Inertia and Asymmetric Price Transmission
We propose consumption inertia as a new explanation for asymmetric price transmission. Inertia in consumer demand enlarges retailers' gains in gross profits from raising prices in response to higher wholesale prices and reduces gains from decreasing prices in response to lower wholesale prices....
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
2010-08-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/93210 |