Editorial
In this paper, the authors explore the price-setting behavior of Austrian firms based on survey evidence. The main result is that customer relationships are a major source of price stickiness in the Austrian economy. They also find that the majority of firms in the sample follows a time-dependent pricing strategy. However, a substantial fraction of firms deviates from time-dependent pricing in the case of large shocks and switches to a state-dependent pricing strategy. In addition, the authors present evidence suggesting that the price response to various shocks is subject to asymmetries. The paper has also been published as ECB Working paper No. 464.