Sticky

Sticky is a term used in the social sciences and particularly economics used to describe a situation in which a variable is resistant to change. For example, nominal wages are often said to be sticky. Market forces may reduce the real value of labour in an industry, but wages will tend to remain at previous levels. This can be due to institutional factors such as price regulations, legal contractual commitments (eg office leases and employment contracts), labour unions, human stubbornness, or self-interest. Stickiness normally applies in one direction. For example, a variable that is "sticky downward" will be reluctant to drop even if conditions dictate that it should.

Economists tend to cite four possible causes of price stickiness: menu costs, money illusion, imperfect information with regards to price changes, and fairness concerns. Robert Hall cites incentive and cost barriers on the part of firms to help explain stickiness in wages.