AN EXPLICIT SOLUTION FOR DYNAMIC MENU COSTS WITH ZERO DISCOUNTING

Authors
CHALKLEY M
Citation
M. Chalkley, AN EXPLICIT SOLUTION FOR DYNAMIC MENU COSTS WITH ZERO DISCOUNTING, Economics letters, 57(2), 1997, pp. 189-195
Citations number
9
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
57
Issue
2
Year of publication
1997
Pages
189 - 195
Database
ISI
SICI code
0165-1765(1997)57:2<189:AESFDM>2.0.ZU;2-L
Abstract
In a dynamic stochastic environment, small menu costs generate conside rable inertia. This paper uses the average cost criterion to analyse a model with zero discounting and considers the relationship between th e discounted and zero discounting models of dynamic menu costs. (C) 19 97 Elsevier Science S.A.