Price point and price rigidity: One micro-basis of price rigidity theory

Abstract

This paper discusses on price point and price rigidity, which are the breakthrough of price rigidity's micro basement of Keynesianism,focusing on the micro causes of price rigidity's formation, analysing the empirical data. The existing theories of firms' optimal reaction to consumers' rational inattention are likely to explain the actual importance of price point and the relationship between price point and price rigidity.