000			02638cam a22003737 4500
001			w22490
003			NBER
005			20211020105214.0
006			m o d
007			cr cnu||||||||
008			210910s2016 mau fo 000 0 eng d
100	1		_aIlut, Cosmin L.
245	1	0	_aParalyzed by Fear: _bRigid and Discrete Pricing under Demand Uncertainty / _cCosmin L. Ilut, Rosen Valchev, Nicolas Vincent.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2016.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w22490
500			_aAugust 2016.
520	3		_aWe propose a new theory of price rigidity based on firms' Knightian uncertainty about their competitive environment. This uncertainty has two key implications. First, firms learn about the shape of their demand function from past observations of quantities sold. This learning gives rise to kinks in the expected profit function at previously observed prices, making those prices both sticky and more likely to reoccur. Second, uncertainty about the relationship between aggregate and industry-level inflation generates nominal rigidity. We prove the main insights analytically and quantify the effects of our mechanism. Our estimated quantitative model is consistent with a wide range of micro-level pricing facts that are typically challenging to match jointly. It also implies significantly more persistent monetary non-neutrality than in standard models, allowing it to generate large real effects from nominal shocks.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aC1 - Econometric and Statistical Methods and Methodology: General _2Journal of Economic Literature class.
690		7	_aD8 - Information, Knowledge, and Uncertainty _2Journal of Economic Literature class.
690		7	_aE3 - Prices, Business Fluctuations, and Cycles _2Journal of Economic Literature class.
690		7	_aL11 - Production, Pricing, and Market Structure • Size Distribution of Firms _2Journal of Economic Literature class.
700	1		_aValchev, Rosen.
700	1		_aVincent, Nicolas.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w22490.
856	4	0	_uhttps://www.nber.org/papers/w22490
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w22490
942			_2ddc _cW-PAPER
999			_c325632 _d284194