menu cost


Also found in: Wikipedia.

menu cost

the costs to firms of changing their prices. These costs include retraining sales staff, reprinting price lists or relabelling products and informing customers. When menu costs are high, firms will be discouraged from changing prices frequently
References in periodicals archive ?
Type of food: British pub food Price range: Most meals on the mains section of the menu cost between PS10 and PS12, a small chicken parmesan is PS8.95 and there is a slightly more expensive grill menu.
Proper pub meal in a stunning setting; THIS WEEK WE ARE AT the buck inn IN great ayton. bethany lodge GIVES HER VERDICT
A menu cost is a cost that a firm incurs to change its price.
Using the economics of the pass-through in proving antitrust injury in Robinson-Patman cases
* Virgiliu Midrigan, New York University and NBER, and Oleksly Kryvtsov, Bank of Canada, "Inventories, Markups and Real Rigidities in Menu Cost Models" (NBER Working Paper No.
Monetary Economics Program meeting
It is, at least, all reasonably priced - two/three courses from the 'bistro' menu cost pounds 37/pounds 42, which includes the entrance fee of about pounds 15 (although more formal menus are offered on major racedays for upwards of pounds 50).
Kempton's Panoramic loses sight of the essentials once past the prawn cocktail
The firm's decision to change price is based on whether the incremental profit that results from the change in price outweighs the menu cost. However, it is important to consider whether the firm perceives the shock to be transitory or permanent.
Small menu costs and large business cycles: an extension of the Mankiw model
Examples of menu cost pricing for various menu suggestions are illustrated to help the operator set consumer selling prices while taking into account the desired gross profit margin.
Successful ideas on the web: Aviko, the specialist fresh ideas, menu suggestions and practical tips on its new foodservice website
Consider a dynamic menu-cost model in which there is positive steady-state inflation; firms can change prices costlessly every second period, but, if firms want to change prices in between the two periods, they must pay the menu cost. This gives rise to an asymmetric pricing rule in which "inaction" is optimal for a wider range of negative shocks than positive shocks.
Asymmetric effects of monetary policy in the United States
Each of the firms chooses to incur a menu cost (print a new catalog) twice per year.
The Frequency and Costs of Individual Price Adjustment
The standard objection to the menu cost explanation of infrequent price adjustment is that these costs are much too small to explain observed pricing behavior.
On the infrequent adjustment of price by firms
Before the menu cost model can be taken seriously, it must tackle the obvious objection that in practice administrative costs of price and wage adjustment are very small.
Imperfect competition and macroeconomics: a survey
Price range: Starters on the main menu cost around PS4 with sharing plates at around PS8.
Classic pub grub and divine desserts; THIS WEEK WE ARE AT THE SIX MEDALS IN MIDDLESBROUGH HEATHER WILLIS GIVES HER VERDICT
Financial browser ?
Full browser ?