Dynamic Pricing Policies:  Duopoly Equilibrium and          Information Acquisition
{'Code': '04050100', 'Directorate': {'Abbreviation': 'SBE', 'LongName': 'Direct For Social, Behav & Economic Scie'}, 'Division': {'Abbreviation': 'SES', 'LongName': 'Divn Of Social and Economic Sciences'}}
{'SignBlockName': 'Lynn A. Pollnow', 'PO_EMAI': None, 'PO_PHON': None}
This project studies the microeconomic umderpinnings of the                     inflationary process.  It is widely accepted among economic theorists           that inflation, that is changes in the aggregate price level, is                characterized by discrete jumps in individual prices.  This work                analyzes the theoretical feasibility of aggregating those discrete              price changes into a smooth time path for an aggregate price level.             Fundamental to such a study is the interaction of the firms in setting          pricing policies.  If firms follow identical real price cycles in               setting prices, then consistent aggregation is feasible.  However,              there are important reasons why such uniformity in pricing policies             among independent firms might not converge to an economic equilibrium.                                                                                          Specifically the project employs a duopoly model where demand depends           on current real prices.  Each firm faces a choice of a price path or            price strategy which maximizes the present value of profits over a              time horizon.  The salient feature of the model is the discontinuous            pattern of nominal price adjustments.  The project characterizes those          conditions under which the assumptions of a smoothly changing                   aggregate price level is consistent with economic equilibruim.                  %%%                                                                             Among the most difficult and important areas of economic research is            the characterization of price movements, production, and  pricing               strategies of firms in oligopolistic markets.  Such markets by                                                                                                  definition have only a few firms which account for all the industry's                                                                                           output, and are very prevalent in both the U.S. and international                                                                                               economy.  Automobile manufacturing is an example of an oligopolistic                                                                                            market.  In such markets prices are set based on the interaction among                                                                                          the firms, the relative size of each firm's market share, and the                                                                                               incentives faced by each firm to act independently of the others.                                                                                               This type of interaction results in the prices set by individual firms                                                                                          being changed in discrete intervals rather than moving smoothly                                                                                                 through time.  However, many studies of the aggregate economy,                                                                                                  particularly those examining inflation, assume a continuous time path                                                                                           for prices.                                                                                                                                                                                                                                                                                                                     This project studies the conditions under which the assumption of a                                                                                             smooth time path for aggregate prices is consistent with the                                                                                                    independent setting of prices by individual firms, and with economic                                                                                            equilibrium.  In doing so, the work adds a fundamental theoretical                                                                                              basis to studies of both the aggregate economy and the behavior of                                                                                              individual firms.
{'FirstName': 'Kenneth', 'LastName': 'Arrow', 'PI_MID_INIT': 'J', 'PI_SUFX_NAME': None, 'PI_FULL_NAME': 'Kenneth J Arrow', 'EmailAddress': 'arrow@leland.stanford.edu', 'NSF_ID': '000120906', 'StartDate': '07/15/1989', 'EndDate': None, 'RoleCode': 'Principal Investigator'}
{'Name': 'Stanford University', 'CityName': 'STANFORD', 'ZipCode': '943052004', 'PhoneNumber': '6507232300', 'StreetAddress': '450 JANE STANFORD WAY', 'StreetAddress2': None, 'CountryName': 'United States', 'StateName': 'California', 'StateCode': 'CA', 'CONGRESSDISTRICT': '16', 'CONGRESS_DISTRICT_ORG': 'CA16', 'ORG_UEI_NUM': 'HJD6G4D6TJY5', 'ORG_LGL_BUS_NAME': 'THE LELAND STANFORD JUNIOR UNIVERSITY', 'ORG_PRNT_UEI_NUM': None}
{'Name': None, 'CityName': None, 'StateCode': None, 'ZipCode': None, 'StreetAddress': None, 'CountryCode': None, 'CountryName': None, 'StateName': None, 'CountryFlag': None, 'CONGRESSDISTRICT': None, 'CONGRESS_DISTRICT_PERF': '""'}
{'Code': '1320', 'Text': 'Economics'}
{'url': 'https://www.nsf.gov/awardsearch/download?DownloadFileName=1988&All=true', 'xml': '8821925.xml'}