Knowledge

Menu cost

Source 📝

95:. Firms are faced with the decision to alter prices frequently as a result of changes in the general price level, product costs, market structure, regulation and demand level. Despite frequent market changes, businesses may be hesitant to update prices to reflect these changes due to menu costs. If the menu cost outweighs the expected increase in revenue associated with the price change firms would prefer to exist in 388:
On the other hand, eventhough idiosyncratic shocks cause most of the price adjustments, new prices reflect both firm-level and aggregate shocks. Thus even a small inflationary shock, one which is not sufficient to lead to a price change on its own, is quickly reflected in new prices as firms react to
313:
that required individual price tags to be placed on items. The study found that menu costs were 2.5 times higher for the store impacted by the local pricing requirements. Further, firms not subject to the requirements were found to change the prices of 15.6% of products every week compared to 6.3% of
308:
requirements such as requiring individual price stickers on each item can increase menu costs by increasing the time needed to update prices in stores physically. The study summarised above, which detailed the magnitude of menu costs in multistore supermarkets, also investigated the impact of pricing
226:
found that the size of the menu cost needed to match the micro-data of price adjustment inside an otherwise standard business cycle model is implausibly large to justify the menu-cost argument. The reason is that such models lack "real rigidity". This is a property that markups do not get squeezed by
392:
To summarize, the essence of menu costs is the result of actual factors affecting the enterprise, rather than monetary factors. This is also why when discussing "Factors influencing menu costs" in the previous section of this article, only actual factors such as Pricing regulation, Number of product
227:
large adjustment in factor prices (such as wages) that could occur in response to the monetary shock. Modern New Keynesian models address this issue by assuming that the labor market is segmented, so that the expansion in employment by a given firm does not lead to lower profits for the other firms.
380:
Mikhail Golosov et al. found in a 2007 study that the real cause of menu cost changes (i.e. menu price adjustments) comes from idiosyncratic shocks – kind of unexpected shocks. When the idiosyncratic shocks in the model are shut down, the frequency of price adjustments is roughly unchanged in high
250:
used determine factors that change prices and costs. For example, it may be necessary to reprint the latest menu, contact the distributor, to change the price list and the prices of items on the shelf. Menu costs in some industries may be small, but the scale may influence business decisions about
384:
Mikhail Golosov et al. also explained the way in which idiosyncratic shocks work. Although idiosyncratic shocks may seem like a sudden change in price, their most important role is shocking to productivity or demand. That is to say, it is not simply a sudden increase in the amount of currency -
373:
We may intuitively think that the relationship between menu cost and inflation rate may be very simple. A key prediction of any menu cost model is that the fraction of firms that re-price in a given time interval will increase with increases in the inflation rate. And for deflation, even large
402: 166:
concluded that even small menu costs create inefficient price adjustment and push equilibrium below the point which is socially optimal. He further suggested that the subsequent loss of welfare far exceeds the menu cost that causes it. Michael Parkin also put forward the idea.
90:
Menu costs are the costs incurred by the business when it changes the prices it offers customers. A typical example is a restaurant that has to reprint the new menu when it needs to change the prices of its in-store goods. So, menu costs are one factor that can contribute to
282:
Results of the study showed that the menu cost was on average $ 105,887 per year, per store. This figure comprised 0.7% of revenue, 32.5% of net margins and $ 0.52/price change. Subsequently in order for updating prices to be beneficial the
218:
and Claus Hansen showed that even if menu costs were applied to a small sector of the economy, this would influence the rest of the economy and lead to prices in the rest of the economy becoming less responsive to changes in demand.
506:
Menu cost encompasses the cost of informing consumers in the form of advertising and labour involved in repricing/ repackaging, as well as information cost for accurate profit curves and quantity demanded.
322:
A 2015 study published by the MIT Press, used data from a national retailer operating a large number of stores selling groceries, health and beauty products to investigate the impact of that the number of
364:
magnitude of these changes was 10%. The study suggests that decreased pricing rigidity could be attributable to automated pricing algorithms allowing businesses to respond in real time to market shocks.
331:
increases led to price increases on 71.2% of occasions for products with a single variant compared to 59.8% of the time where there were seven or more variants. This result was linked with the increased
115:
to cover the cost of printing a new menu. Thus, menu costs can create considerable nominal rigidity in other industries or markets, essentially amplifying their impact on the entire industry through a
183:
leads to inertia in nominal prices and wages which can lead to output fluctuating at constant nominal prices and wages. The menu cost idea was also extended to wages as well as prices by
1328:
Zbaracki, Mark J.; Ritson, Mark; Levy, Daniel; Dutta, Shantanu; Bergen, Mark (May 2004). "Managerial and Customer Costs of Price Adjustment: Direct Evidence from Industrial Markets".
381:
inflationary environments but it is much reduced when inflation is low. That is to say, in the context of stable high inflation, sellers will not frequently adjust menu prices.
74:, the cost of planning for and deciding on a price change, and the impact of consumers' potential reluctance to buy at the new price. Examples of menu costs include updating 374:
disinflations have small real effects if credibly carried out. So, the higher the inflation rate, the lower the menu cost. The two may be a clear positive correlation.
1435:
Levy, Daniel; Bergen, Mark; Dutta, Shantanu; Venable, Robert (1997-08-01). "The Magnitude of Menu Costs: Direct Evidence from Large U. S. Supermarket Chains*".
487:
lead to small shifts in firm structure, supply and demand affecting the profits curve. However, firms do not in turn adjust their prices constantly as
1093:
Akerlof, George A.; Yellen, Janet L. (1985). "Can Small Deviations from Rationality Make Significant Differences to Economic Equilibria?".
135:
The concept of the menu cost has originally introduced by Eytan Sheshinski and Yoram Weiss (1977) in their paper looking at the effect of
82:. At the same time, companies can reduce menu costs by developing intelligent pricing strategies, thereby reducing the need for changes. 498:
approaches 0, prices will constantly adjust to match the optimal profit level from the shifting economy as there is no cost to do so.
287:
of an item needed to decrease by more than 32.5%. The study concluded that menu costs have a magnitude large enough to be of
805:
Anderson, Eric; Jaimovich, Nir; Simester, Duncan (2015). "Price Stickiness: Empirical Evidence of the Menu Cost Channel".
360:
grocery stores. The study found that on average a product listed on Amazon Fresh had 20.4 price changes in a year and the
1122:
Akerlof, George A.; Yellen, Janet L. (1985). "A Near-rational Model of the Business Cycle, with Wage and Price Inertia".
356:(an online grocery store) found that product prices of the online retailer are less rigid than the prices of traditional 111:
in the market. For example, a restaurant should not change its prices until the price change generates enough additional
262:
used data from 5 multistore supermarket chains to investigate the magnitude of menu costs. They considered the cost of:
1124: 906: 210:
with price taking agents to use imperfectly competitive equilibria with price and wage setting agents (mostly adopting
1312: 1199: 1045: 159: 866:
Pitt, Leyland F.; Berthon, Pierre; Watson, Richard T.; Ewing, Michael (March 2001). "Pricing strategy and the net".
1586: 78:, re-tagging items, changing signage, printing new menus, mistake costs and hiring consultants to develop new 1534: 904:
Mankiw, N. Gregory (1985). "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly".
1555: 1532:
Almeida; Heitor; Marco Bonomo (2002). "Optimal State-dependent Rules, Credibility, and Inflation Inertia".
1246: 1050: 1382: 1215:
Dixon, Huw; Hansen, Claus (1999). "A Mixed Industrial Structure Magnifies the Importance of Menu Costs".
767: 151:
environment. This justifies the fixed costs of changing prices when revenues are expected to increase.
17: 1260: 1151:
Blanchard, O.; Kiyotaki, N. (1987). "Monopolistic Competition and the Effects of Aggregate Demand".
1030: 1217: 1153: 1095: 211: 648:
labour cost of repackaging using wage per hour and quantity of boxes as two variables, therefore,
1576: 685: 669: 337: 266: 55: 1255: 179:
firms will not want to change their price unless the benefit is more than a small amount. This
491:
acts as a buffer, making such small benefits economically unviable compared to the menu cost.
472:, then the menu cost is less than the theoretical increase in profits and adjusting prices to 1017: 239:, the price adjustment is usually major. The company would not engage in price adjustment if 199: 437:
the profit curve to a new theoretical model. The firm must decide whether to maintain price
139:
on the frequency of price changes. Sheshink and Weiss concluded that even fully anticipated
96: 70:
more generally. Menu costs can be broadly classed into costs associated with informing the
8: 690: 645: 427: 415: 207: 180: 176: 1514: 1363: 1273: 1162: 1104: 1075: 1067: 1005: 923: 848: 840: 784: 742: 695: 665: 477: 423: 324: 79: 39: 1230: 879: 1518: 1506: 1462: 1412: 1355: 1308: 1195: 1137: 1079: 1009: 972: 883: 832: 734: 700: 434: 223: 188: 184: 1367: 1184: 852: 401: 1581: 1496: 1452: 1444: 1402: 1394: 1345: 1337: 1277: 1265: 1226: 1133: 1059: 995: 962: 954: 942: 915: 875: 822: 814: 776: 765:
Sheshinski, Eytan; Weiss, Yoram (1977). "Inflation and Costs of Price Adjustment".
357: 333: 155: 108: 104: 92: 75: 47: 1501: 1484: 1383:"The Magnitude of Menu Costs: Direct Evidence from Large U. S. Supermarket Chains" 1244:
Golosov, Mikhail; Lucas, Robert E. Jr. (2007). "Menu Costs and Phillips Curves".
255: 236: 1553:
Golosov, Mikhail; Robert E, Lucas Jr (2007). "Menu costs and Phillips curves".
1341: 627:
are integers equal to the number of variables required for each function (e.g.
484: 203: 168: 163: 116: 51: 43: 147:
will change prices in discrete jumps rather than continual changes when in an
1570: 1510: 1466: 1416: 1359: 976: 887: 836: 738: 288: 284: 240: 195: 100: 67: 1448: 1398: 353: 172: 120: 967: 958: 827: 818: 243:
start to fall to the point where menu costs lead to more revenue losses.
124: 1457: 1407: 1350: 844: 327:
variants has on the frequency of price change. The study concluded that
1166: 1108: 1071: 927: 788: 746: 349: 305: 247: 63: 59: 943:"Real Rigidity, Nominal Rigidity, and the Social Value of Information" 941:
Angeletos, George-Marios; Iovino, Luigi; La'O, Jennifer (2016-01-01).
385:
therefore, the role of currency in influencing menu costs is neutral.
1180: 705: 215: 148: 143:
results in an actual menu cost for the business. They suggested that
140: 136: 31: 919: 780: 1269: 1063: 352:
has seen a decrease in menu costs. A study on the price setting of
144: 103:
level remains constant despite market change is said that there is
71: 1000: 991: 1046:"The Output-Inflation Trade-off When Prices Are Costly to Change" 112: 1305:
Interest and Prices: Foundations of a Theory of Monetary Policy
361: 1185:"The Role of imperfect competition in new Keynesian economics" 725:
Gordon, Robert J. (1990). "What Is New-Keynesian Economics?".
202:
with price (and wage) setting agents. This started a shift in
419: 1381:
Levy, D.; Bergen, M.; Dutta, S.; Venable, R. (1997-08-01).
673: 449:, which corresponds to the new maximised profit level  328: 310: 66:
have extended its meaning to include the costs of changing
453:. Let menu cost (the cost of adjusting prices) equal  1531: 804: 615:
are advertising, labour and information respectively and
259: 652: = 2). Each firm will have a different set of 1327: 1294:, Review of Economic Studies, volume 57, pages: 183-203 940: 62:
print new menus to change the prices of items. However
1434: 1380: 865: 198:
explanation of price stickiness relied on introducing
1192:
Surfing Economics: Essays for the Inquiring Economist
58:economists. The term originated from the cost when 1483:Hillen, Judith; Fedoseeva, Svetlana (2021-03-01). 414:Consider a firm in a hypothetical economy, with a 85: 1150: 294: 1568: 340:required to change the price of multiple items. 154:The idea of applying menu costs as an aspect of 1552: 1482: 1430: 1428: 1426: 1292:Real Rigidities and the Non-neutrality of Money 764: 99:and stay at the original price level. When the 418:graph describing the relationship between the 393:variables, and Industry/market are mentioned. 377:But the actual situation may not be the case. 1121: 1092: 42:incurs due to changing its prices. It is one 1423: 1243: 1485:"E-commerce and the end of price rigidity?" 1214: 368: 314:products in the chain subject to the laws. 422:of its goods and the firm's corresponding 230: 158:was simultaneously put forward by several 1500: 1456: 1406: 1349: 1259: 999: 966: 826: 278:Supervision during the changeover process 989: 336:associated with the additional cost of 14: 1569: 1043: 903: 807:The Review of Economics and Statistics 724: 672:. It can be reported by examining the 396: 275:Mistakes during the changeover process 1478: 1476: 1323: 1321: 1179: 235:When a company's menu costs a lot in 899: 897: 800: 798: 760: 758: 756: 430:at the corresponding price value M. 24: 1473: 1437:The Quarterly Journal of Economics 1387:The Quarterly Journal of Economics 1330:Review of Economics and Statistics 1318: 1125:The Quarterly Journal of Economics 907:The Quarterly Journal of Economics 433:Now suppose a shock to the market 400: 272:Printing and delivering new labels 25: 1598: 894: 795: 753: 175:put forward the idea that due to 990:Carlton, Dennis (January 1986). 1546: 1525: 1374: 1297: 1284: 1237: 1208: 1173: 1144: 1115: 441:with a suboptimal profit level 86:Menu costs and nominal rigidity 1307:. Princeton University Press, 1138:10.1093/qje/100.Supplement.823 1086: 1037: 983: 934: 859: 727:Journal of Economic Literature 718: 674:menu prices of the restaurants 295:Factors influencing menu costs 13: 1: 1535:Journal of Monetary Economics 1502:10.1016/j.jbusres.2020.11.052 1231:10.1016/S0014-2921(98)00029-4 880:10.1016/s0007-6813(01)80022-7 711: 664:functions depending on their 222:In 2007, Mikhail Golosov and 206:away from using the model of 1556:Journal of Political Economy 1489:Journal of Business Research 1290:Ball L. and Romer D (1990). 1247:Journal of Political Economy 1051:Journal of Political Economy 246:The type of company and the 7: 679: 10: 1603: 1342:10.1162/003465304323031085 768:Review of Economic Studies 483:Daily fluctuations in the 318:Number of product variants 254:A 1997 study published by 130: 1303:Michael Woodford (2003), 445:, or adjust the price to 1218:European Economic Review 1154:American Economic Review 1096:American Economic Review 1044:Parkin, Michael (1986). 992:"The Rigidity of Prices" 947:American Economic Review 369:Menu costs and inflation 212:monopolistic competition 160:New Keynesian economists 1587:New Keynesian economics 1449:10.1162/003355397555352 1399:10.1162/003355397555352 686:New Keynesian economics 478:economically profitable 231:Magnitude of menu costs 162:in 1985–1986. In 1985, 27:Cost of changing prices 1194:. New York: Palgrave. 1025:Cite journal requires 406: 269:to change shelf prices 156:Nominal Price Rigidity 410:When to use menu cost 404: 200:imperfect competition 959:10.1257/aer.20110865 819:10.1162/REST_a_00507 426:. The firm seeks to 416:normally distributed 251:whether to reprice. 691:Bounded rationality 646:production function 397:Analysing menu cost 208:perfect competition 181:bounded rationality 177:bounded rationality 46:explanation of the 696:Sticky (economics) 407: 300:Pricing regulation 80:pricing strategies 1559:. 155.2: 171–199. 994:. Cambridge, MA. 868:Business Horizons 701:Shoe leather cost 502:Finding menu cost 189:Nobuhiro Kiyotaki 185:Olivier Blanchard 38:is a cost that a 16:(Redirected from 1594: 1561: 1560: 1550: 1544: 1543: 1529: 1523: 1522: 1504: 1480: 1471: 1470: 1460: 1432: 1421: 1420: 1410: 1378: 1372: 1371: 1353: 1325: 1316: 1301: 1295: 1288: 1282: 1281: 1263: 1241: 1235: 1234: 1225:(8): 1475–1499. 1212: 1206: 1205: 1189: 1177: 1171: 1170: 1148: 1142: 1141: 1119: 1113: 1112: 1090: 1084: 1083: 1041: 1035: 1034: 1028: 1023: 1021: 1013: 1003: 987: 981: 980: 970: 938: 932: 931: 901: 892: 891: 863: 857: 856: 830: 802: 793: 792: 762: 751: 750: 733:(3): 1115–1171. 722: 358:brick and mortar 334:price stickiness 237:economic markets 109:price stickiness 105:nominal rigidity 93:nominal rigidity 76:computer systems 48:price-stickiness 21: 1602: 1601: 1597: 1596: 1595: 1593: 1592: 1591: 1567: 1566: 1565: 1564: 1551: 1547: 1530: 1526: 1481: 1474: 1433: 1424: 1379: 1375: 1326: 1319: 1302: 1298: 1289: 1285: 1261:10.1.1.498.5570 1242: 1238: 1213: 1209: 1202: 1187: 1178: 1174: 1149: 1145: 1120: 1116: 1091: 1087: 1042: 1038: 1026: 1024: 1015: 1014: 988: 984: 939: 935: 920:10.2307/1885395 902: 895: 864: 860: 803: 796: 781:10.2307/2297067 763: 754: 723: 719: 714: 682: 643: 637: 598: 589: 578: 570: 559: 551: 540: 531: 522: 428:maximise profit 405:Menu cost graph 399: 371: 344:Industry/market 297: 256:Harvard College 233: 133: 88: 28: 23: 22: 15: 12: 11: 5: 1600: 1590: 1589: 1584: 1579: 1577:Business terms 1563: 1562: 1545: 1524: 1472: 1443:(3): 791–824. 1422: 1393:(3): 791–824. 1373: 1336:(2): 514–533. 1317: 1296: 1283: 1270:10.1086/512625 1254:(2): 171–199. 1236: 1207: 1200: 1172: 1161:(4): 647–666. 1143: 1132:(5): 823–838. 1114: 1103:(4): 708–720. 1085: 1064:10.1086/261369 1058:(1): 200–224. 1036: 1027:|journal= 982: 953:(1): 200–227. 933: 914:(2): 529–538. 893: 858: 813:(4): 813–826. 794: 775:(2): 287–303. 752: 716: 715: 713: 710: 709: 708: 703: 698: 693: 688: 681: 678: 670:firm structure 641: 635: 601: 600: 594: 587: 574: 568: 555: 549: 536: 527: 518: 398: 395: 389:other shocks. 370: 367: 296: 293: 291:significance. 280: 279: 276: 273: 270: 241:profit margins 232: 229: 204:macroeconomics 169:George Akerlof 164:Gregory Mankiw 132: 129: 117:chain reaction 97:disequilibrium 87: 84: 26: 9: 6: 4: 3: 2: 1599: 1588: 1585: 1583: 1580: 1578: 1575: 1574: 1572: 1558: 1557: 1549: 1541: 1537: 1536: 1528: 1520: 1516: 1512: 1508: 1503: 1498: 1494: 1490: 1486: 1479: 1477: 1468: 1464: 1459: 1454: 1450: 1446: 1442: 1438: 1431: 1429: 1427: 1418: 1414: 1409: 1404: 1400: 1396: 1392: 1388: 1384: 1377: 1369: 1365: 1361: 1357: 1352: 1347: 1343: 1339: 1335: 1331: 1324: 1322: 1314: 1313:0-691-01049-8 1310: 1306: 1300: 1293: 1287: 1279: 1275: 1271: 1267: 1262: 1257: 1253: 1249: 1248: 1240: 1232: 1228: 1224: 1220: 1219: 1211: 1203: 1201:0-333-76061-1 1197: 1193: 1186: 1182: 1176: 1168: 1164: 1160: 1156: 1155: 1147: 1139: 1135: 1131: 1127: 1126: 1118: 1110: 1106: 1102: 1098: 1097: 1089: 1081: 1077: 1073: 1069: 1065: 1061: 1057: 1053: 1052: 1047: 1040: 1032: 1019: 1011: 1007: 1002: 1001:10.3386/w1813 997: 993: 986: 978: 974: 969: 968:1721.1/109191 964: 960: 956: 952: 948: 944: 937: 929: 925: 921: 917: 913: 909: 908: 900: 898: 889: 885: 881: 877: 873: 869: 862: 854: 850: 846: 842: 838: 834: 829: 828:1721.1/100494 824: 820: 816: 812: 808: 801: 799: 790: 786: 782: 778: 774: 770: 769: 761: 759: 757: 748: 744: 740: 736: 732: 728: 721: 717: 707: 704: 702: 699: 697: 694: 692: 689: 687: 684: 683: 677: 675: 671: 667: 663: 659: 655: 651: 647: 640: 634: 630: 626: 622: 618: 614: 610: 606: 597: 593: 586: 582: 577: 573: 567: 563: 558: 554: 548: 544: 539: 535: 530: 526: 521: 517: 513: 510: 509: 508: 504: 503: 499: 497: 494:Note that as 492: 490: 486: 481: 479: 475: 471: 467: 463: 458: 456: 452: 448: 444: 440: 436: 431: 429: 425: 421: 417: 412: 411: 403: 394: 390: 386: 382: 378: 375: 366: 363: 359: 355: 351: 346: 345: 341: 339: 335: 330: 326: 320: 319: 315: 312: 307: 302: 301: 292: 290: 289:macroeconomic 286: 285:profitability 277: 274: 271: 268: 265: 264: 263: 261: 257: 252: 249: 244: 242: 238: 228: 225: 220: 217: 213: 209: 205: 201: 197: 196:new Keynesian 192: 190: 186: 182: 178: 174: 170: 165: 161: 157: 152: 150: 146: 142: 138: 128: 126: 122: 118: 114: 110: 106: 102: 101:nominal price 98: 94: 83: 81: 77: 73: 69: 65: 61: 57: 56:New Keynesian 53: 49: 45: 44:microeconomic 41: 37: 33: 19: 1554: 1548: 1542:: 1317–1336. 1539: 1533: 1527: 1492: 1488: 1458:10419/206762 1440: 1436: 1408:10419/206762 1390: 1386: 1376: 1351:10419/206841 1333: 1329: 1304: 1299: 1291: 1286: 1251: 1245: 1239: 1222: 1216: 1210: 1191: 1175: 1158: 1152: 1146: 1129: 1123: 1117: 1100: 1094: 1088: 1055: 1049: 1039: 1018:cite journal 985: 950: 946: 936: 911: 905: 874:(2): 45–54. 871: 867: 861: 810: 806: 772: 766: 730: 726: 720: 661: 657: 653: 649: 638: 632: 628: 624: 620: 616: 612: 608: 604: 602: 595: 591: 584: 580: 575: 571: 565: 561: 556: 552: 546: 542: 537: 533: 528: 524: 519: 515: 511: 505: 501: 500: 495: 493: 488: 482: 473: 469: 465: 461: 459: 454: 450: 446: 442: 438: 432: 413: 409: 408: 391: 387: 383: 379: 376: 372: 354:Amazon Fresh 347: 343: 342: 321: 317: 316: 304:Pricing and 303: 299: 298: 281: 253: 245: 234: 224:Robert Lucas 221: 193: 173:Janet Yellen 153: 149:inflationary 134: 125:distributors 89: 52:macroeconomy 35: 29: 676:in detail. 348:A shift to 60:restaurants 1571:Categories 1181:Dixon, Huw 712:References 350:e-commerce 306:regulatory 248:technology 145:businesses 64:economists 18:Menu costs 1519:230576945 1511:0148-2963 1495:: 63–73. 1467:0033-5533 1417:0033-5533 1360:0034-6535 1256:CiteSeerX 1080:154048806 1010:153540905 977:0002-8282 888:0007-6813 837:0034-6535 739:0022-0515 706:Inflation 644:) is the 590:, . . ., 569:1, . . ., 550:1, . . ., 216:Huw Dixon 141:inflation 137:inflation 121:suppliers 36:menu cost 32:economics 1368:11482473 1183:(2001). 853:16854468 845:43830279 680:See also 72:consumer 1582:Pricing 1278:8027651 1167:1814537 1109:1821349 1072:1831966 928:1885395 789:2297067 747:2727103 485:economy 325:product 131:History 113:revenue 54:put by 50:of the 1517:  1509:  1465:  1415:  1366:  1358:  1311:  1276:  1258:  1198:  1165:  1107:  1078:  1070:  1008:  975:  926:  886:  851:  843:  835:  787:  745:  737:  666:market 611:, and 603:where 435:shifts 424:profit 362:median 338:labour 267:Labour 68:prices 34:, the 1515:S2CID 1364:S2CID 1274:S2CID 1188:(PDF) 1163:JSTOR 1105:JSTOR 1076:S2CID 1068:JSTOR 1006:S2CID 924:JSTOR 849:S2CID 841:JSTOR 785:JSTOR 743:JSTOR 464:< 420:price 1507:ISSN 1463:ISSN 1413:ISSN 1356:ISSN 1309:ISBN 1196:ISBN 1031:help 973:ISSN 884:ISSN 833:ISSN 735:ISSN 668:and 660:and 579:) + 560:) + 541:) = 329:cost 311:laws 258:and 194:The 187:and 171:and 123:and 40:firm 1497:doi 1493:125 1453:hdl 1445:doi 1441:112 1403:hdl 1395:doi 1391:112 1346:hdl 1338:doi 1266:doi 1252:115 1227:doi 1134:doi 1130:100 1060:doi 996:doi 963:hdl 955:doi 951:106 916:doi 912:100 876:doi 823:hdl 815:doi 777:doi 476:is 460:If 260:MIT 214:). 119:of 107:or 30:In 1573:: 1540:49 1538:. 1513:. 1505:. 1491:. 1487:. 1475:^ 1461:. 1451:. 1439:. 1425:^ 1411:. 1401:. 1389:. 1385:. 1362:. 1354:. 1344:. 1334:86 1332:. 1320:^ 1272:. 1264:. 1250:. 1223:43 1221:. 1190:. 1159:77 1157:. 1128:. 1101:75 1099:. 1074:. 1066:. 1056:94 1054:. 1048:. 1022:: 1020:}} 1016:{{ 1004:. 971:. 961:. 949:. 945:. 922:. 910:. 896:^ 882:. 872:44 870:. 847:. 839:. 831:. 821:. 811:97 809:. 797:^ 783:. 773:44 771:. 755:^ 741:. 731:28 729:. 656:, 636:1, 623:, 619:, 607:, 532:, 523:, 480:. 468:− 457:. 191:. 127:. 1521:. 1499:: 1469:. 1455:: 1447:: 1419:. 1405:: 1397:: 1370:. 1348:: 1340:: 1315:. 1280:. 1268:: 1233:. 1229:: 1204:. 1169:. 1140:. 1136:: 1111:. 1082:. 1062:: 1033:) 1029:( 1012:. 998:: 979:. 965:: 957:: 930:. 918:: 890:. 878:: 855:. 825:: 817:: 791:. 779:: 749:. 662:N 658:L 654:A 650:j 642:2 639:r 633:r 631:( 629:L 625:k 621:j 617:i 613:N 609:L 605:A 599:) 596:k 592:s 588:1 585:s 583:( 581:N 576:j 572:r 566:r 564:( 562:L 557:i 553:q 547:q 545:( 543:A 538:k 534:s 529:j 525:r 520:i 516:q 514:( 512:Z 496:Z 489:Z 474:N 470:A 466:B 462:Z 455:Z 451:B 447:N 443:A 439:M 20:)

Index

Menu costs
economics
firm
microeconomic
price-stickiness
macroeconomy
New Keynesian
restaurants
economists
prices
consumer
computer systems
pricing strategies
nominal rigidity
disequilibrium
nominal price
nominal rigidity
price stickiness
revenue
chain reaction
suppliers
distributors
inflation
inflation
businesses
inflationary
Nominal Price Rigidity
New Keynesian economists
Gregory Mankiw
George Akerlof

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.