Repricing Avalanches in the Billion-Prices Data / Laura Leal, Haaris Mateen, Makoto Nirei, José A. Scheinkman.

Format:

Book

Author/Creator:

Leal, Laura.

Contributor:

National Bureau of Economic Research.

Mateen, Haaris.

Nirei, Makoto.

Scheinkman, José A.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29236.

NBER working paper series no. w29236

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2021.

Summary:

Nirei and Scheinkman (2021) proposed an equilibrium model of price adjustments with menu-costs with a finite number of firms and derived a "reproduction number" for repricing and a limit functional form for the distribution of the number of simultaneously price-adjusting firms. We show that the distribution of price-changes in data from the Billion Prices Project is well fitted by this functional form and exhibits a reproduction number that is close to unity, indicating that complementarity in price-changes plays a major role in repricings.

Notes:

Print version record

September 2021.