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Definition of 'Price Stickiness'
The resistance of a price (or set of prices) to change, despite changes in the broad economy that suggest a different price is optimal. "Sticky" is a general economics term that can apply to any financial variable that is resistant to change. When applied to prices, it means that the prices charged for certain goods are reluctant to change despite changes in input cost or demand patterns.
Price stickiness can also occur in just one direction, as in "sticky-up" or "sticky-down". A price that is sticky-up, for instance, can move up rather easily but will only will move down with pronounced effort.
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Investopedia explains 'Price Stickiness'
The fact that price stickiness exists can be attributed to several different forces, such as the costs to update pricing, including changes to marketing materials that must be made when prices do change. Part of price stickiness is also attributed to imperfect information in the markets, or non-rational decision-making by company executives. Some firms will try to keep prices constant as a business strategy, even though it is not sustainable based on material costs, labor, etc.
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Search results for 'Price Stickiness'
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http://www.investopedia.com/articles/04/102004.asp
... Price volatility can be bad for equities as well ... Again, the companies' margins are
squeezed due to the stickiness of prices for some items and the elasticity of ...
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http://www.investopedia.com/articles/economics/09/wage-stickiness.asp
... Wage Stickiness Wage stickiness, as an economic concept, has been around for a while. ...
example, when the demand for oil or copper decreases, the price for those ...
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http://www.investopedia.com/university/macroeconomics/macroeconomics1.asp
... Because of this stickiness, the government can improve macroeconomic conditions
through fiscal ... factors and the influence of money supply on price levels. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance/raise-deductible.aspx
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance/pay-insurance-less-often.aspx
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance/avoid-claims.aspx
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance/conclusion.aspx
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance/shop-around.aspx
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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http://www.investopedia.com/slide-show/6-ways-to-save-money-on-insurance/use-single-insurer.aspx
... It also increases the stickiness-factor, as its more difficult to switch all policies
at once while maintaining ... 10 Tips For Getting A Fair Price On A Home. ...
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