Header Ads Widget

Ticker

6/recent/ticker-posts

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.

Post a Comment

0 Comments