Sticky-Down

Sticky-Down
A figure that can move higher relatively easily, but only will go down with pronounced effort. The existence of sticky-down prices has been proved by numerous modern-day economic studies, and usually it involves the economic input costs that go into producing a particular good or service.

Sticky-down is an extension of "price stickiness".

A classic example of something that is "sticky-down" are wages; employees will never mind a wage increase, but attempting to reduce wages is something that has historically been so unsuccessful that it is almost never attempted anymore. Workers relentlessly refute any wage declines, regardless of whether it is in the best interest of all workers in the long term.


Investment dictionary. . 2012.

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