Firms' Pricing Decisions Affected by Competitors, Inflation, and Uncertainty.
The article discusses how firms in Japan set their prices based on what their competitors are doing. When prices go down, firms are more likely to follow suit. Companies with a bigger market share are less affected by competitors' price changes. Higher inflation expectations make firms more likely to raise their prices. Firms facing uncertainty tend to delay changing their prices. The researchers used data from surveys to study these patterns and linked their findings to a previous model.