Product Cycles and Prices:Search Foundation

Yuki Teranishi

No 79, UTokyo Price Project Working Paper Series from University of Tokyo, Graduate School of Economics

Abstract: This paper develops a price model with search foundation based on product cycles and prices. Observations conclude that firms match with a new product, then set a new price with negotiation and fix the price until the product exits from a market. This evident behavior brings a new model of price stickiness as a Search-based Phillips curve. The model includes a New Keynesian Phillips curve with the Calvo mechanism as a special case and describes new features. First, new parameters related to product entry and product exit play important roles for price dynamics. Second, such parameters for price stickiness directly appear on an expected price and lagged price.

Keywords: Phillips curve; search and matching (search for similar items in EconPapers)
Pages: 16 pages
Date: 2017-07
New Economics Papers: this item is included in nep-mac
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Related works:
Working Paper: Product Cycles and Prices: a Search Foundation (2021)
Working Paper: Product Cycle and Prices: a Search Foundation (2019)
Working Paper: Product Cycles and Prices:Search Foundation (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:upd:utppwp:079

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