Abstract
Previous research has analyzed the behavior of retail gasoline stations in how they adjust their prices. In this paper we analyze the daily movements in prices of four retail gasoline stations located in Newburgh, New York. We find some evidence to support the notion that the behavior is explained by menu costs. There is substantial evidence that the firms adjust their prices asymmetrically, being more inclined to increase than to decrease prices. We conclude that the pricing behavior is being determined by a combination of search costs for the consumers and menu costs for the producers. Copyright © 2007 John Wiley & Sons, Ltd.
Recommended Citation
Davis, M. C. (2007). The Dynamics of Daily Retail Gasoline Prices. Managerial and Decision Economics John Wiley & Sons, Ltd..
The definitive version is available at https://doi.org/10.1002/mde.1372
Meeting Name
2005 IEEE Instrumentationand Measurement Technology Conference Proceedings
Department(s)
Economics
Keywords and Phrases
Gasoline Prices; Menu Costs; Search Cost
International Standard Serial Number (ISSN)
0143-6570
Document Type
Article - Journal
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 2007 John Wiley & Sons, Ltd., All rights reserved.
Publication Date
01 Jan 2007
