The dynamics of durable goods markets: rational expectations and sticky prices

Ocaña Pérez de Tudela, Carlos

Publication:
The dynamics of durable goods markets: rational expectations and sticky prices

dc.affiliation.dpto	UC3M. Departamento de Economía	es
dc.contributor.author	Ocaña Pérez de Tudela, Carlos
dc.contributor.editor	Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned	2008-08-14T08:22:38Z
dc.date.available	2008-08-14T08:22:38Z
dc.date.issued	1991-03
dc.description.abstract	This paper studies price dynamics in a durable good market under the assumption that consumers have rational expectations on future prices. For a wide variety of expectations, optimal consumption plans result in sticky-price demand functions. Market dynamics are characterized by intertemporal price discrimination which provides a possible explanation for the declining path of price observed in many "young" industries. Unexpected shocks on demand result in price overshooting, while unexpected supplyshocks have the opposite effect on price.
dc.format.mimetype	application/pdf
dc.identifier.issn	2340-5031
dc.identifier.uri	https://hdl.handle.net/10016/2797
dc.language.iso	eng
dc.relation.ispartofseries	Working Papers
dc.relation.ispartofseries	1991-13
dc.rights	Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRights	open access
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.eciencia	Economía
dc.subject.other	Durable Goods
dc.subject.other	Rational Expectations
dc.subject.other	Sticky Prices
dc.subject.other	Interıtemporal
dc.subject.other	Overshooting
dc.title	The dynamics of durable goods markets: rational expectations and sticky prices
dc.type	working paper	*
dspace.entity.type	Publication