This is a Free article. You will receive access to the full text.

More New Evidence on Asymmetric Gasoline Price Responses

Free Article

There exist two possible aggregation issues in studies to asymmetric price responses: (i) an issue due to aggregation over time, and (ii) an issue due to aggregation over space. Empirical studies already confirm the existence of the first issue. This paper confirms the existence of the second issue by studying daily retail prices of individual gasoline stations. I find that 38% of the stations respond asymmetrically to changes in the gasoline spot market price. Hence, asymmetric pricing is a feature of individual firms.

Download Executive Summary Download PDF

JEL Codes: C51: Model Construction and Estimation, C55: Large Data Sets: Modeling and Analysis, D40: Market Structure, Pricing, and Design: General, E31: Price Level; Inflation; Deflation, L11: Production, Pricing, and Market Structure; Size Distribution of Firms, L81: Retail and Wholesale Trade; e-Commerce, Q02: Commodity Markets, Q41: Energy: Demand and Supply; Prices

Keywords: Asymmetric Price Responses, Price Setting, Gasoline Markets

DOI: 10.5547/01956574.36.3.rfab

References: Reference information is available for this article. Join IAEE, log in, or purchase the article to view reference data.

Published in Volume 36, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2023 International Association for Energy Economics | Privacy Policy | Return Policy