TY  - JOUR
AU  - Blinder,Alan S.
TI  - Why are Prices Sticky? Preliminary Results from an Interview Study
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3646
PY  - 1991
Y2  - March 1991
UR  - http://www.nber.org/papers/w3646
L1  - http://www.nber.org/papers/w3646.pdf
N1  - Author contact info:
Alan S. Blinder
Department of Economics
Princeton University
Princeton, NJ 08544-1021
Tel: 609/258-3358
Fax: 609/258-5398
E-Mail: blinder@princeton.edu
AB  - This paper reports preliminary results from a large research project on business pricing which is currently underway. The idea is to use interviews with actual price setters to assess the validity of a dozen theories of price stickiness. The rather unorthodox (for economists) methodology is defended; the research design is described briefly; and a few results based on the first 72 interviews (out of a projected 200) are presented. This sample suggests that the median firm changes its price annually and that price adjustments typically lag 3-4 months behind shocks to demand or cost.
ER  -