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Research Firm Rational Pricing Behavior Negligence Hypothesis Based

Posted on:2014-05-15Degree:MasterType:Thesis
Country:ChinaCandidate:Z LiuFull Text:PDF
GTID:2269330428460279Subject:Western economics
Abstract/Summary:PDF Full Text Request
Keynesian macroeconomics which is lack of microcosmic foundation is always the focus of theoretical economics, and the interpretation of the price rigidity is also hundreds. Sims explains the rational inattention by introducing the concept of information and put forward the rational inattention’s concept:agent cannot get all the information, is due to its own information processing capacity is limited. There are differences between the perfect information and rational inattention that the firm may set a different profit-maximizing price which is setted with the limit of information process capacity, Thus led to the discussion of the rational inattention price.In the model of rational inattention price, the manufacturer set the price under the certain information constraints through the distribution of attention. This paper summarize the study of price stickiness to leads the study of rational inattention, and in-depth discussions, analysis manufacturers how to set the price and how to distribute the attention under the condition of information constraints on that basis.This paper is divided into six chapters:the first chapter is preface,in this part puts forward questions and elaborate this article research background, research significance, the content, framework and innovation of this article; the second part analysis the stickiness problem, summing up theories of the study of price stickiness, lead to the rational inattention theory on that basis, the third part focuses on analyzing the theory of rational inattention, gives a rational connotation of negligence, and introduces how to quantify the information, the fourth part is the focus of this paper, it is mainly to establish a model framework, introducing the rational inattention’s background, describing the model’s variable, researching the random noise which is the white noise distribution and the optimal allocation of attention of agent,the fifth part is extensions and shortcomings, the seventh part is conclusion.
Keywords/Search Tags:Price stickiness, Rational inattention, Price information, Allocation ofattention
PDF Full Text Request
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