New Insights into Price-Setting Behaviour in the UK: Introduction and Survey Results

This article introduces the other contributions in this Feature which use individual price data to investigate the extent of pricing rigidities in the UK. It also reports the most relevant results of a new survey of the price-setting behaviour that we have conducted for the UK, including details about why prices are sticky. The articles consider whether the microdata or survey results are consistent with particular theories of price setting. Our results suggest that there is heterogeneity in price-setting behaviour, which is ignored in typical representative agent models.