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Pricing Decisions in the Euro AreaHow Firms Set Prices and Why$
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Silvia Fabiani, Claire Suzanne Loupias, Fernando Manuel Monteiro Martins, and Roberto Sabbatini

Print publication date: 2007

Print ISBN-13: 9780195309287

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195309287.001.0001

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The Use of Survey Data to Investigate Price Setting

The Use of Survey Data to Investigate Price Setting

Theory and the Research Design for the Euro Area

Chapter:
(p.13) 1 The Use of Survey Data to Investigate Price Setting
Source:
Pricing Decisions in the Euro Area
Author(s):

Stephen G. Cecchetti

Fernando Martins

Roberto Sabbatini

Harald Stahl

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195309287.003.0002

This chapter reviews the main theoretical aspects of firms' price setting behavior analyzed in the national studies surveyed in the book. It deals with the determinants of prices, the characteristics of the price adjustment process, with a focus on reasons underlying nominal price stickiness, and asymmetries in price changes. The chapter also reviews the pros and cons of the use of surveys to investigate price setting behavior and the main characteristics of the research design for the euro area documented in the book.

Keywords:   Price setting, price stickiness, asymmetries, surveys

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