TY  - JOUR
AU  - Rotemberg,Julio J.
AU  - Saloner,Garth
TI  - The Relative Rigidity of Monopoly Pricing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1943
PY  - 1986
Y2  - May 1986
UR  - http://www.nber.org/papers/w1943
L1  - http://www.nber.org/papers/w1943.pdf
N1  - Author contact info:
Julio J. Rotemberg
Graduate School of Business
Harvard University, Morgan Hall
Soldiers Field
Boston, MA  02163
Tel: 617/495-1015
Fax: 617/496-5994
E-Mail: jrotemberg@hbs.edu

Garth Saloner
Graduate School of Business
Stanford University
Stanford, CA 94305-5015
Tel: 650/723-1940
Fax: 650/725-7692
E-Mail: saloner_garth@gsb.stanford.edu
AB  - This paper seeks to explain why monopolies keep their nominal prices
constant for longer periods than do tight oligopolies. We provide two
possible explanations. The first is based on the presence of a small fixed
cost of changing prices. The second, on small costs of discovering the
optimal price. The incentive to change price for duopolists producing
differentiated products exceeds that of a single monopolistic firm which
produced the same tange of products as the duopoly.
ER  -