Price adjustment costs
As a price adjustment cost is referred to in economics adjustment costs caused by the adjustment of prices arise. Another name is menu cost ( English menu costs ), which depicts that in the catering price changes a reprint the menus require.
In general, all costs are added to the price adjustment costs that arise from a price adjustment , for example the costs that arise from printing new price lists , product catalogs or brochures , but also the costs of deciding on new prices.
With the increase in electronic commerce , the price adjustment costs have decreased, since the electronic price lists can be adjusted quickly without great effort.
As a result, companies with high price adjustment costs have disadvantages because they adjust their prices less often: Immediately after a price increase that is intended for a longer period of time, the company's goods are relatively more expensive than those of their competitors.
Price adjustment costs are usually relatively low, but need more attention in times of unexpected inflation . During hyperinflation , companies have to change their prices daily, or more often, to keep up with all the other prices in the economy. At the time of the global economic crisis , they rose so much that there were temporarily no price lists in German restaurants. Instead, a waiter stood on a table every half hour to announce the price increases.
See also
Individual evidence
- ↑ Mankiw, Gregory (2000): Macroeconomics, Chapter 7 ("Money and Inflation"), ISBN 3-7910-1615-6