The bigger the stickier : asymmetric adjustment to negative demand shocks

Fil: Tasso, Javier. Universidad de San Andrés. Departamento de Economía; Argentina.

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Detalles Bibliográficos
Autor principal: Tasso, Javier
Otros Autores: Ruzzier, Christian
Formato: Tesis Tesis de maestría updatedVersion
Lenguaje:Inglés
Publicado: Universidad de San Andrés. Departamento de Economía 8/18
Acceso en línea:http://hdl.handle.net/10908/18502
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Repositorio Digital - Universidad de San Andrés (UdeSa) de Universidad de San Andrés
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spelling I37-R143-10908-185022025-01-29T16:34:26Z The bigger the stickier : asymmetric adjustment to negative demand shocks Tasso, Javier Ruzzier, Christian Fil: Tasso, Javier. Universidad de San Andrés. Departamento de Economía; Argentina. This article studies the response to unanticipated demand shocks in a simultaneous competition duopoly model, where adjustment is simultaneous as well it has no cost and it is characterized by a single choice to adjust or not previous plans. In line with former analyses, responses are asymmetric in two dimensions: firms always react to positive demand shocks while they may not react to negative ones and, when demand shocks are negative and small-sized, only a single firm adjusts its previous decisions. Since in the baseline model firms are identical, it is undetermined which firm will adjust its decisions. Allowing for different marginal costs generates a third type of asymmetry: There are medium-sized negative shocks such that only the firm with higher marginal costs adjusts its price or quantities. This result suggest that the bigger firm is less willing to modify its plans after the shock. This result is robust to other demand specifications and does not depend on the shock being unanticipated. Furthermore, the analysis suggest that it is possible for a negative shock to reduce market concentration, but this situation is not likely. 8/18/2021 17:53Z 8/18/2021 17:53Z 2020-07 Tesis info:eu-repo/semantics/masterThesis info:ar-repo/semantics/tesis de maestría info:eu-repo/semantics/updatedVersion Tasso, J. (2020). The bigger the stickier : asymmetric adjustment to negative demand shocks. [Tesis de maestría, Universidad de San Andrés. Departamento de Economía]. Repositorio Digital San Andrés. http://hdl.handle.net/10908/18502 http://hdl.handle.net/10908/18502 eng info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-nc-nd/4.0/ application/pdf application/pdf Universidad de San Andrés. Departamento de Economía
institution Universidad de San Andrés
institution_str I-37
repository_str R-143
collection Repositorio Digital - Universidad de San Andrés (UdeSa)
language Inglés
description Fil: Tasso, Javier. Universidad de San Andrés. Departamento de Economía; Argentina.
author2 Ruzzier, Christian
author_facet Ruzzier, Christian
Tasso, Javier
format Tesis
Tesis de maestría
Tesis de maestría
updatedVersion
author Tasso, Javier
spellingShingle Tasso, Javier
The bigger the stickier : asymmetric adjustment to negative demand shocks
author_sort Tasso, Javier
title The bigger the stickier : asymmetric adjustment to negative demand shocks
title_short The bigger the stickier : asymmetric adjustment to negative demand shocks
title_full The bigger the stickier : asymmetric adjustment to negative demand shocks
title_fullStr The bigger the stickier : asymmetric adjustment to negative demand shocks
title_full_unstemmed The bigger the stickier : asymmetric adjustment to negative demand shocks
title_sort bigger the stickier : asymmetric adjustment to negative demand shocks
publisher Universidad de San Andrés. Departamento de Economía
publishDate 8/18
url http://hdl.handle.net/10908/18502
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