Consumers often complain that retail prices respond faster to increases in wholesale prices than to decreases. Despite many empirical studies confirming this “Rockets-and-Feathers”phenomenon for different industries, the mechanism driving it is not well understood. In this paper, we show that, in contrast to the theoretical prediction, asymmetric price adjustment to cost shocks, as well as pric...

Asymmetries in price adjustment can reconcile contrasts between rapid price movements in inflationary episodes, consistent with classical theories of flexible pricing, and sluggish price responses in contractions, consistent with Keynesian theories of sticky price adjustments. Nonparametric analysis of SIC two-digit industry data indicates that negative asymmetries are more pronounced for real ...

We propose numerical algorithms for solving first price auction problems where bidders draw independent valuations from heterogeneous distributions. The heterogeneity analyzed in this work is what might naturally emerge when subsets of distributionally homogeneous bidders collude. Bid functions and expected revenues are calculated for two special cases. Extensions to more general asymmetric fir...

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The paper reports on the effects of one-sided imperfect information on bidding behaviour in simultaneous and sequential first-price auctions of non-identical objects when bidders have multi-unit demands. The analysis provides the following four main results. First, when different objects are to be sold in sequence, the seller maximises her expected revenues by selling the most valuable object f...

In many retail markets, prices rise faster than they fall. We develop a model of search with learning to explain this phenomenon of asymmetric price adjustments. By extending our static game analysis to the dynamic setting, we demonstrate that asymmetric price adjustments arise naturally. When a positive cost shock occurs, all the searchers immediately learn the true state; the search intensity...

This study analyzes how changes in oil prices are transmitted to gasoline Korea. We attempt identify the main causes of observed price asymmetry and offer plausible theories by investigating transmission at different levels distribution process. Retail react faster increases Singapore spot market than decreases. also find from wholesale gasoline, but opposite direction. Additionally, there is l...

Tooth root crack is considered as one of the crucial causes of failure in the gearing system and it occurs at the tooth root due to an excessive bending stress developed in the root region. The modern power transmission gear drives demand high bending load capacity, increased contact load capacity, low weight, reduced noise and longer life. These subsequent conditions are satisfied by the aid o...