stickiness

stickiness A tendency for certain economic variables, notably prices and wages, to ‘stick’ at or near their existing levels despite changes in supply and demand. For example, companies tend not to cut the wages of existing employees, even where market forces might seem to demand this; wages (like prices) are therefore said to be ‘sticky downward’. Various factors have been cited to explain such stickiness: these include the limited information available to transactors, the role of long-term fixed-price or fixed-wage contracts, the hidden costs of repricing (seemenu costs), and consumer resistance to sudden or frequent change.

• accounting code
• accounting concepts
• Accounting Council
• accounting entity
• accounting event
• accounting package
• accounting period
• accounting principles
• accounting rate of return
• accounting ratio
• accounting records
• accounting reference date
• Accounting Standards Board
• accounting technician
• account management group
• account payee only
• account reconciliation
• accounts
• Accounts Modernization Directive
• accounts payable
• accounts receivable
• accrual
• accrual accounting
• accruals concept
• accrued benefits