Optimal price setting during a currency changeover: theory and evidence from french restaurants
This article studies firms’ price-setting decision during a currency changeover. Buyers’ difficulties with the new nominal price level may create incentives to raise prices temporarily but doing so comes at the risk of damaging a seller’s standing as a fair retailer. We model firms’ trade-off and st...
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| Main Authors: | , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
06 May 2014
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| In: |
Applied economics
Year: 2014, Volume: 46, Issue: 23, Pages: 2766-2782 |
| ISSN: | 1466-4283 |
| Online Access: |
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| Author Notes: | Nicoletta Berardi, Thomas Eife & Erwan Gautier |