What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model

Pascal Seppecher (), Isabelle Salle and Marc Lavoie
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Pascal Seppecher: CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper studies coordination between firms in a multi-sectoral macroeconomic model with endogenous business cycles. Firms are both in competition and interdependent, and set their prices with a markup over unit costs. Markups are heterogeneous and evolve under market pressure. We observe a systematic coordination within firms in each sector, and between each sector. The resulting pattern of relative prices are consistent with the labor theory of value. Those emerging features are robust to technology shocks.

Keywords: General interdependence; Pricing; Agent-based modeling (search for similar items in EconPapers)
Date: 2018-06-13
New Economics Papers: this item is included in nep-cmp, nep-evo, nep-hme and nep-mac
Note: View the original document on HAL open archive server: https://hal.science/hal-01486597v2
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model (2018)
Working Paper: What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model (2018)
Working Paper: What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01486597

DOI: 10.1093/icc/dty011

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