price rigidity

Explicit Evidence of an Implicit Contract

JEL codes: 
B12
Version Date: 
Aug 2013
Author/s: 
Abstract: 

We offer the first direct evidence of an implicit contract in a goods market. The evidence comes from the market for Coca-Cola. We demonstrate that the Coca-Cola Company left a written evidence of its implicit contract with its consumers—a very explicit form of an implicit contract.

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Pricing Behaviour and the Response of Hours to Productivity Shocks

JEL codes: 
E31, E32
Version Date: 
Feb 2006
Abstract: 

Recent contributions have suggested that technology shocks have a negative impact on hours, contrary to the prediction of standard flexible-price models of the business cycle. Some authors have interpreted this finding as evidence in favour of sticky-price models, while others have either extended flexible-price models or disputed the empirical finding itself.

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