Edgeworth Price Cycles, Cost-Based Pricing, and Sticky Pricing in Retail Gasoline Markets

Article, Preprint OPEN
Noel, Michael;
  • Publisher: eScholarship, University of California
  • Journal: The Review of Economics and Statistics,volume 89,issue 2 May,pages324-334
  • Related identifiers: doi: 10.1162/rest.89.2.324
  • Subject: Edgeworth Cycles | Price Wars | Retail Gasoline | Edgeworth Cycles, Price Wars, Retail Gasoline

This paper examines dynamic pricing behavior in retail gasoline markets for 19 Canadian cities over 574 weeks. I find three distinct retail pricing patterns: 1. cost-based pricing, 2. sticky pricing, and 3. steep, asymmetric retail price cycles that, while seldom docume... View more