Asymmetric Adjustment in Menu Cost Duopoly

11 Pages Posted: 18 Sep 1996  

Per Svejstrup Hansen

affiliation not provided to SSRN

H. Peter Mollgaard

Copenhagen Business School-Economics

Per Baltzer Overgaard

University of Aarhus - Department of Economics

Jan Rose Sorensen

University of Aarhus - Department of Economics

Date Written: July 5, 1996

Abstract

Contrary to existing menu cost models we assume oligopolistic interaction. Symmetric duopoly may lead to asymmetric adjustment even when menu costs are negligible: In some equilibria only one Orm adjusts to negative shocks, while both Orms adjust to positive shocks.

JEL Classification: D43,E31,L13

Suggested Citation

Hansen, Per Svejstrup and Mollgaard, H. Peter and Overgaard, Per Baltzer and Sorensen, Jan Rose, Asymmetric Adjustment in Menu Cost Duopoly (July 5, 1996). Available at SSRN: https://ssrn.com/abstract=68976 or http://dx.doi.org/10.2139/ssrn.68976

Per Svejstrup Hansen

affiliation not provided to SSRN

Hans Peter Mollgaard

Copenhagen Business School-Economics ( email )

Kilevej 14
Frederiksberg C, Select a state DK-2000
Denmark
+45-3815 20202 (Phone)
+4521622015 (Fax)

HOME PAGE: http://www.cbs.dk/staff/petermollgaard/

Per Baltzer Overgaard (Contact Author)

University of Aarhus - Department of Economics ( email )

University Park
DK-8000 Aarhus C
Denmark
+45 8942 1605 (Phone)

Jan Rose Sorensen

University of Aarhus - Department of Economics ( email )

University Park
DK-8000 Aarhus C
Denmark
+45 8942 1611 (Phone)

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