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| Title: | The dynamics of daily retail gasoline prices | |
| Author (s): | Davis, Michael | |
| Department/Lab Affiliations: | Economics & Finance | |
| Keywords: | Gasoline prices Menu costs Search cost | |
| Issue Date: | 2007 | |
| Publisher: | John Wiley & Sons, Ltd. | |
| Citation: | Davis, Michael C. “The Dynamics of Daily Retail Gasoline Prices” Managerial and Decision Economics, 2007, 28, 713-722. | |
| 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. | |
| Type: | Article - Journal text | |
| In Title: | Managerial and Decision Economics | |
| Copyright Notice: | This material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder. FULL COPYRIGHT INFORMATION: | |
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| title | The dynamics of daily retail gasoline prices | |
| contributor.author | Davis, Michael | |
| contributor.deptlab | Economics & Finance | |
| subject | Gasoline prices | |
| subject | Menu costs | |
| subject | Search cost | |
| date.issued | 2007 | |
| publisher | John Wiley & Sons, Ltd. | |
| identifier.citation | Davis, Michael C. “The Dynamics of Daily Retail Gasoline Prices” Managerial and Decision Economics, 2007, 28, 713-722. | |
| identifier.pub.URI | ||
| description.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. | |
| type | Article - Journal | |
| type.DCMIType | text | |
| type.status | Postprint | |
| rights | This material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder. | |
| rights.URI | ||
| relation.isPartOf | Managerial and Decision Economics | |
| date.accessioned | 2008-04-11T16:24:54Z | |
| date.available | 2008-04-11T17:08:40Z | |
| identifier.persist.URI | ||
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