| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP10220 |
| DP10220 Price Dynamics with Customer Markets | |
| Luigi Paciello; Andrea Pozzi; Nicholas Trachter | |
| 发表日期 | 2014-10-26 |
| 出版年 | 2014 |
| 语种 | 英语 |
| 摘要 | We study a model of firm price setting with customer markets and empirically evaluate its predictions. Our framework captures the dynamics of customers in response to a change in the price set by firms, describes the behavior of optimal prices in the presence of customer retention concerns, and delivers a general equilibrium model of price and customer dynamics. We exploit micro data on purchases from a large U.S. retailer by a panel of households to quantify the model and compare it to the counterfactual benchmark of the monopolistic competition setting. We show that our model with customer markets has markedly dierent implications in terms of the equilibrium price distribution, and better fits the available empirical evidence on retail prices. Moreover, the dynamic of the response of demand to policy relevant shocks is also distinctive. Our results suggest that inertia in customer reallocation across firms increases the persistence in the response of firms' demand to these shocks. |
| 主题 | International Macroeconomics ; Industrial Organization |
| 关键词 | Customer markets Price setting Product market frictions |
| URL | https://cepr.org/publications/dp10220 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/539053 |
| 推荐引用方式 GB/T 7714 | Luigi Paciello,Andrea Pozzi,Nicholas Trachter. DP10220 Price Dynamics with Customer Markets. 2014. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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