Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/206765
Authors: 
Levy, Daniel
Year of Publication: 
2007
Citation: 
[Journal:] Managerial and Decision Economics [ISSN:] 1099-1468 [Volume:] 28 [Issue:] 7 (Special Issue: Price Rigidity and Flexibility: New Empirical Evidence) [Pages:] 639-647
Abstract: 
The marketplace, along with its price system, is the single most important institution in a western‐style free enterprise economy. The ability of prices to adjust to changes in supply and demand conditions enables the market to function efficiently, and that ability lies behind the magical invisible hand mechanism. The behaviour of prices and in particular the ability of prices to adjust to changes in market conditions, therefore, have fundamental implications for many key issues in many areas of both microeconomics as well as macroeconomics. It is, therefore, critical to study and understand whether there are barriers to price adjustments, what are the nature of these barriers, how the barriers lead to price rigidity, what are the possible implications of these rigidities, etc. This introductory essay briefly summarizes the 14 empirical studies of price rigidity that are included in this special issue.
Subjects: 
Price Rigidity
Price Flexibility
Cost of Price Adjustment
Menu Cost
Managerial and Customer Cost of Price Adjustment
Pricing
Price System
Price Setting
New Keynesian Economics
Store-Level Data
Micro-Level Data
JEL: 
D21
D40
E12
E31
E50
E52
E58
L11
L16
M20
M30
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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