Belief-dependent pricing decisions
| dc.contributor.author | Frache, Serafin | |
| dc.contributor.author | Lluberas, Rodrigo | |
| dc.contributor.author | Turen, Javier | |
| dc.date.accessioned | 2025-01-20T17:08:43Z | |
| dc.date.available | 2025-01-20T17:08:43Z | |
| dc.date.issued | 2024 | |
| dc.description.abstract | How do inflation and idiosyncratic cost expectations affect firms' price-adjusting decisions? Evidence on micro price adjustment has emphasized that price changes follow a fixed adjustment schedule, i.e., time-dependent pricing, or that they respond to the state of the economy, i.e., state-dependent pricing. We use firm expectation survey data to argue that price-adjustment decisions are also belief-dependent. While controlling for time- and state-dependent factors, we find that for the decision to adjust prices, inflation expectations do not play any role, but firms' beliefs about their overall costs do. This highlights a robust correlation between idiosyncratic expectations and economic decisions. We show that the expectation channel is heterogeneous across firms and operates with a delay. When studying firms' expected magnitude of price changes, the relevance of current inflation expectations is recovered apart from costs. Our findings provide empirical support for the belief-driven nature of pricing decisions and their economic implications. | |
| dc.fuente.origen | WOS | |
| dc.identifier.doi | 10.1016/j.econmod.2023.106630 | |
| dc.identifier.eissn | 1873-6122 | |
| dc.identifier.issn | 0264-9993 | |
| dc.identifier.uri | https://doi.org/10.1016/j.econmod.2023.106630 | |
| dc.identifier.uri | https://repositorio.uc.cl/handle/11534/90978 | |
| dc.identifier.wosid | WOS:001166300800001 | |
| dc.language.iso | en | |
| dc.revista | Economic modelling | |
| dc.rights | acceso restringido | |
| dc.subject | Inflation expectations | |
| dc.subject | Cost expectations | |
| dc.subject | Firm surveys | |
| dc.subject | Price adjustments | |
| dc.subject.ods | 08 Decent Work and Economic Growth | |
| dc.subject.ods | 17 Partnerships for the Goals | |
| dc.subject.odspa | 08 Trabajo decente y crecimiento económico | |
| dc.subject.odspa | 17 Alianzas para lograr los objetivos | |
| dc.title | Belief-dependent pricing decisions | |
| dc.type | artículo | |
| dc.volumen | 132 | |
| sipa.index | WOS | |
| sipa.trazabilidad | WOS;2025-01-12 |