Monday, December 8, 2008
How to Avoid the Menu Cost
A literature in macroeconomics, in which I have participated from time to time, looks to the costs of price adjustment--that is, menu costs--as the reason for the gradual adjustment of prices to economic shocks. A blog reader alerts me to one restaurant's solution to the problem: an inflation surcharge added at the end of bill.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment