What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model

Abstract : This paper studies coordination between firms in a multi-sectoral macroeconomic model with endogenous business cycles. Firms are both in competition and interdependent, and set their prices with a markup over unit costs. Markups are heterogeneous and evolve under market pressure. We observe a systematic coordination between firms of each sector, and between each sector. The resulting pattern of relative prices is fairly consistent with the labor theory of value. These emerging features are robust to technology shocks.
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https://hal.archives-ouvertes.fr/hal-01612320
Contributor : Pascal Seppecher <>
Submitted on : Friday, October 6, 2017 - 5:25:51 PM
Last modification on : Saturday, December 22, 2018 - 5:45:48 PM

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Pascal Seppecher, Isabelle Salle, Marc Lavoie. What drives markups? Evolutionary pricing in an agent-based stock-flow consistent macroeconomic model. Industrial and Corporate Change, Oxford University Press (OUP), 2018, 27 (6), pp.1045-1067. 〈10.1093/icc/dty011〉. 〈hal-01612320〉

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