Transaction-Cost Influences on the Adjustment of Industries' Prices and Outputs.

A-Tier
Journal: Review of Economics and Statistics
Year: 1987
Volume: 69
Issue: 4
Pages: 575-83

Authors (2)

Bradburd, Ralph M (Williams College) Caves, Richard E (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Short-run adjustments of prices and outputs in producer-goods industries should reflect suppliers' continuing quasi-contractual relationships with their industrial customers. The authors test hypotheses about these relationships by analyzing cross-section determinants of time-series coefficients showing the rates of adjustment of industries' prices and outputs to movements of demand (inferred from customers' outputs). They confirm that price adjustments decrease with the bases for "sticky" relations with customers; the sensitivity of quantity adjustments increases with those bases and decreases with suppliers' own adjustment costs. They also confirm the standard hypothesis that price flexibility decreases with producer concentration. Copyright 1987 by MIT Press.

Technical Details

RePEc Handle
repec:tpr:restat:v:69:y:1987:i:4:p:575-83
Journal Field
General
Author Count
2
Added to Database
2026-01-25