Language:

Sales and Monetary Policy

The American economic review, 2011-04, Vol.101 (2), p.844-876 [Peer Reviewed Journal]

Copyright© 2011 The American Economic Association ;Copyright American Economic Association Apr 2011 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.101.2.844 ;CODEN: AENRAA

Full text available

Citations Cited by

Actions
1. Add to My Research
2. Remove from My Research
3. E-mail
4. Print
5. Permalink
6. Citation
7. EasyBib
8. EndNote
9. RefWorks
10. Delicious
11. Export RIS
12. Export BibTeX

Title:
Sales and Monetary Policy
Author: Guimaraes, Bernardo ; Sheedy, Kevin D.
Subjects: Brand loyalty ; Consumer behaviour ; Consumer Price Index ; Consumers ; Consumption ; Cost of sales ; Customers ; Economic models ; Economics ; Equilibrium ; Hunting ; Inflation ; Macroeconomics ; Marginal costs ; Markups ; Monetary policy ; Phillips curve ; Political science ; Price cuts ; Price elasticity ; Price formation ; Price levels ; Retail trade ; Sales ; Sales management ; Sales strategies ; Shopping ; Shorter Papers ; Studies ; Utility functions
Is Part Of: The American economic review, 2011-04, Vol.101 (2), p.844-876
Description: A striking fact about pricing is the prevalence of “sales”: large temporary price cuts followed by prices returning to exactly their former levels. This paper builds a macroeconomic model with a rationale for sales based on firms facing customers with different price sensitivities. Even if firms can adjust sales without cost, monetary policy has large real effects owing to sales being strategic substitutes: a firm's incentive to have a sale is decreasing in the number of other firms having sales. Thus the flexibility seen in individual prices due to sales does not translate into flexibility of the aggregate price level. (JEL E13, E31, E52, L11, L25, L81, M31)
Publisher: Nashville: American Economic Association
Language: English
Identifier: ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/aer.101.2.844
CODEN: AENRAA
Source: ProQuest Central

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Sales and Monetary Policy

Copyright© 2011 The American Economic Association ;Copyright American Economic Association Apr 2011 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.101.2.844 ;CODEN: AENRAA

Searching Remote Databases, Please Wait