Asking About Prices: A New Approach to Understanding Price Stickiness

Index

Index Main entries to the questions on the manufacturing interview are indexed alphabetically by primary concept. adverse selection theory applied to price rigidity (Allen), 125, 165-67, 173-74 in judging quality by price, 167-73 in market clearing, 165 Akerlof, George, 21 Allen, Franklin, 166, 173 asymmetry in price adjustment coordination failure question (BI0[b]),264-65 in costs of adjusting prices, 240-41 downward Keynesian wage-price stickiness, 306 of imperfect information, 165 in nominal contract (BI), 121, 144 Okun's prediction, 156-59 price adjustment with nominal contracts , 144-45 in pricing point theory (B4), 180 procyclical elasticity of demand, 196 test conducted for, 299 testing price/quality theory for, 169-70 of upward and downward price stickiness , 119-25 See also symmetry asymmetry questions, 120-24, 180 Azaraidis, Costas, 28, 149 Baily, Martin N., 35, 149 Ball, Laurence, 33, 238, 261, 270-73, 310 Barro, Robert, 5 Barsky, Robert, 35 Basu, Susanto, 187 Bils, Mark, 24, 186 Blanchard, Olivier, 20, 198, 203, 270, 301 Blinder, Alan, 29, 230, 274, 276, 282 Braun, Steven N., 23 business cycle correlation of nonprice competition with,291 discounts during, 143 firms' sensitivity to, 189-90, 193 marginal cost function, 18 theory of price rigidity over, 8 See also variable correlations Caballero, Ricardo, 230 Canetti, Elie, xi-xii Caplin, Andrew, 230, 301 Carlton, Dennis, 21, 25, 231, 235, 283-84,291,312 Cecchetti, Stephen, 83, 215 Chirinko, Robert, 187 Choi, Don, 5 Clower, Robert, 260 collusion, 32-34 complementarity, strategic, 261 constant marginal cost (B7) correlation with other theories, 116-19 firms' ranking and rating of, 108-15 of price stickiness, 18-19, 70, 102, 108,112,216-20,225,303-4 (B7[a)) variable costs per unit, 77, 102, 216-25, 302 372 Index consumers significance of pricing points for, 25-26, 179, IS5 See also sales to consumers and business (A2) contracts implicit. 151-52 indexation of. l32 price stickiness theories based on, 27-30, 92-95 questions related to explicit and implicit, 92-95 See also implicit contracts (B2); nominal contracts (B 1) contracts with customers (AS) as source of price stickiness, 93 (AS [a]) price setting in, 94 (AS[d]) discounting, 143, 302 Cooper, Russell. 33, 261 coordination failure (BIO) asymmetry question related to, 123-24 Ball-Romer modeL 261. 270-73 correlation of variables related to, 265, 304 correlation with other theories, 116-19 firms' ranking and rating of theory, IOS-15, 265-70 implications for macroeconomic policy , 310 in price stickiness theories, 32-33, S6, lOS, Ill, 260-69, 304, 307 (BI0[a]) firms' raising prices first. 5S, 263, 30S (BIO[b]) price cutting delays, 123-24, 264-65 (BI0[c]) reasons for delays in price cutting, 265-66 cost-based pricing (B6), 19-20, 69, 72, 85,108,111,197-210,297, 304-5, 307, 312-13 correlates of importance of. 207-10, 304-5 correlation with other theories, 116-19 firms' ranking and rating of. lOS-IS, 200-202, 21S-20 implications for macroeconomic policy , 312-13 (B6[a,b,c]) speed of change of price, 205-7, 307 (B6 [d]) foreseeing of price increases, 202-3, 2S0, 307 (B6[e]) stockpiling in advance of price increases, 203 (B6 [f]) circumstances for raising prices, 203, 307 (B6 [g]) circumstances for not raising prices, 204-5, 308 costs to maintain fixed price, 145-4S price stickiness theories based on, IS-22 questions related to, 100-104 summary of firms' part A responses, 106 costs of price adjustment (BS) asymmetry question related to, 123 correlation with other theories, 116-19 firms' ranking and rating of. 10S-15 price stickiness related to, 70-71. 112,226-31,236-37,242,244 (BS[a]) special or hidden costs, 91-92,161. 231-33, 244, 248, 250, 266, 309 (BS [b]) sources of adjustment costs, 233, 301, 30S (BS[c]) costs related to frequency of price change, 91-92, 234, 301 (BS [d]) eflect of decreased price on costs, 123, 237-3S (BS[f]) effect of demand on production and prices, 239-42 (BS [h]) firms' response to declining demand,242 (BS[j]) costs related to change in production, 161. 242-43 (BS[k]) production change as alternative to price change, 243 cost structure (All) costs related to change in production level. 100, 207 cost structure (A12) fixed and variable costs, 100-10I, l35, 302 marginal cost concept. 100-104, 112, l35 customers differentiation among, 24 elasticity of demand, ISS-9 L 196 firms' concern with response of...