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https://hdl.handle.net/10419/55002
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DC Field | Value | Language |
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dc.contributor.author | Graf Lambsdorff, Johann | en |
dc.contributor.author | Schubert, Manuel | en |
dc.contributor.author | Giamattei, Marcus | en |
dc.date.accessioned | 2012-01-27 | - |
dc.date.accessioned | 2012-02-03T15:36:24Z | - |
dc.date.available | 2012-02-03T15:36:24Z | - |
dc.date.issued | 2011 | - |
dc.identifier.uri | http://hdl.handle.net/10419/55002 | - |
dc.description.abstract | We carry out an experiment on a macroeconomic price setting game where prices are complements. Despite relevant information being common knowledge and price flexibility we observe significant deviation from equilibrium prices and history dependence. In a first treatment we observe that equilibrium values were obtained in the long run but at the cost of a very slow adjustment and thus history dependence. By reporting a business indicator in a simpler form, subjects were given the chance to coordinate their prices by help of a heuristic in a second treatment. This option was widely taken, bringing about excess volatility and a deviation from equilibrium even in the long run. In a third treatment with staggered pricing we observe, contrary to theoretical predictions, the one-round ahead (publicly known) shock is significant, but future inflation is not. Our findings cast light on price dynamics when subjects have limited computational capacities. | en |
dc.language.iso | eng | en |
dc.publisher | |aUniversität Passau, Wirtschaftswissenschaftliche Fakultät |cPassau | en |
dc.relation.ispartofseries | |aPassauer Diskussionspapiere - Volkswirtschaftliche Reihe |xV-63-11 | en |
dc.subject.jel | E31 | en |
dc.subject.jel | C92 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Inflation Persistence | en |
dc.subject.keyword | Staggered Prices | en |
dc.subject.keyword | Sticky Reasoning | en |
dc.subject.keyword | New Keynesian Phillips Curve | en |
dc.title | On the role of heuristics: Experimental evidence on inflation dynamics | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 684346729 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:zbw:upadvr:V6311 | en |
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