The Plain English Guide to Sticky Prices : comparemela.com

The Plain English Guide to Sticky Prices


The Plain English Guide to Sticky Prices
Some things never change.
The world never stops turning. Arnold Palmers are always the best drink to order on a restaurant patio in the summer, and Betty White remains a national treasure with every passing year. There are plenty of other examples I could cite — those are probably the main ones though.
Consistency is, well, consistent in a lot of fields, and pricing is no exception. Certain goods' and services' prices can be extremely resistant to change — they're prices that
stick and are, naturally, referred to as
sticky prices.
Here, we'll explore price stickiness a bit further, go over some examples of sticky prices in practice, and contrast the concept with its natural opposite: flexible pricing.

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