The Discrete Charm of Nominal Illusion

We investigate the emergence and persistence of nominal illusion in an experimental entry game where firms must choose which local market to enter, then compete in prices. All local markets are equivalent in real terms and they only differ in the currency the price competition is run under. Our expe...

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Autores:
Tipo de recurso:
Fecha de publicación:
2018
Institución:
Universidad del Rosario
Repositorio:
Repositorio EdocUR - U. Rosario
Idioma:
spa
OAI Identifier:
oai:repository.urosario.edu.co:10336/18476
Acceso en línea:
https://doi.org/10.48713/10336_18476
http://repository.urosario.edu.co/handle/10336/18476
Palabra clave:
Price competition
Money illusion
Experiments
Nominal representation
Precios
Moneda
Modelos econométricos
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License
http://purl.org/coar/access_right/c_abf2
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oai_identifier_str oai:repository.urosario.edu.co:10336/18476
network_acronym_str EDOCUR2
network_name_str Repositorio EdocUR - U. Rosario
repository_id_str
spelling The Discrete Charm of Nominal IllusionPrice competitionMoney illusionExperimentsNominal representationPreciosMonedaModelos econométricosWe investigate the emergence and persistence of nominal illusion in an experimental entry game where firms must choose which local market to enter, then compete in prices. All local markets are equivalent in real terms and they only differ in the currency the price competition is run under. Our experimental results show a positive, persistent and monotone effect of the nominal exchange rate on (real) posted prices. We provide an explanation in terms of players simplifying the choice set using discrete grids.2018-09-122018-09-14T20:25:18Zinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_804231application/pdfhttps://doi.org/10.48713/10336_18476 http://repository.urosario.edu.co/handle/10336/18476instname:Universidad del Rosarioreponame:Repositorio Institucional EdocURspahttps://ideas.repec.org/p/col/000092/016630.htmlhttp://purl.org/coar/access_right/c_abf2Fatas, EnriqueMorales, Antonio J.oai:repository.urosario.edu.co:10336/184762019-09-19T07:37:01Z
dc.title.none.fl_str_mv The Discrete Charm of Nominal Illusion
title The Discrete Charm of Nominal Illusion
spellingShingle The Discrete Charm of Nominal Illusion
Price competition
Money illusion
Experiments
Nominal representation
Precios
Moneda
Modelos econométricos
title_short The Discrete Charm of Nominal Illusion
title_full The Discrete Charm of Nominal Illusion
title_fullStr The Discrete Charm of Nominal Illusion
title_full_unstemmed The Discrete Charm of Nominal Illusion
title_sort The Discrete Charm of Nominal Illusion
dc.subject.none.fl_str_mv Price competition
Money illusion
Experiments
Nominal representation
Precios
Moneda
Modelos econométricos
topic Price competition
Money illusion
Experiments
Nominal representation
Precios
Moneda
Modelos econométricos
description We investigate the emergence and persistence of nominal illusion in an experimental entry game where firms must choose which local market to enter, then compete in prices. All local markets are equivalent in real terms and they only differ in the currency the price competition is run under. Our experimental results show a positive, persistent and monotone effect of the nominal exchange rate on (real) posted prices. We provide an explanation in terms of players simplifying the choice set using discrete grids.
publishDate 2018
dc.date.none.fl_str_mv 2018-09-12
2018-09-14T20:25:18Z
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_8042
dc.identifier.none.fl_str_mv https://doi.org/10.48713/10336_18476
http://repository.urosario.edu.co/handle/10336/18476
url https://doi.org/10.48713/10336_18476
http://repository.urosario.edu.co/handle/10336/18476
dc.language.none.fl_str_mv spa
language spa
dc.relation.none.fl_str_mv https://ideas.repec.org/p/col/000092/016630.html
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_abf2
rights_invalid_str_mv http://purl.org/coar/access_right/c_abf2
dc.format.none.fl_str_mv 31
application/pdf
dc.source.none.fl_str_mv instname:Universidad del Rosario
reponame:Repositorio Institucional EdocUR
instname_str Universidad del Rosario
institution Universidad del Rosario
reponame_str Repositorio Institucional EdocUR
collection Repositorio Institucional EdocUR
repository.name.fl_str_mv
repository.mail.fl_str_mv
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