Price rigidity, inflation and market concentration: Some Canadian evidence from the 1970s
| Autor: | L. Laudadio, J. C. H. Jones |
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| Rok vydání: | 1990 |
| Předmět: | |
| Zdroj: | Applied Economics. 22:1625-1634 |
| ISSN: | 1466-4283 0003-6846 |
| DOI: | 10.1080/00036849000000069 |
| Popis: | In the literature on industrial pricing there is a long-standing dispute over the theoretical rationale for, and the empirical validity of, price rigidity. Briefly, the arguments is that the speed of price adjustment is a function of market structure: in competitive markets prices are flexible (they adjust rapidly to supply and demand shocks), but in oligopoly they can be relatively rigid (they adjust only slowly, if it all, to these same shocks). 1 But, because the theoretical basis fot the rigidity hypothesis is decidedly ad hoc, it is often summarily dismissed. 2 Empirically, however, a number of studies for various countries and time period have found relationship between concentration (a proxy for oligopolistic market structure) and price change and/or some other measure of the speed of price adjustment, compatible with price rigidity. 3 Although these result are not totally unambiguous, 4 the Canadian evidence, at least prior to the 1970s, strongly supports the rigidity hypothesis (Sellekaerts and L... |
| Databáze: | OpenAIRE |
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