Price differences within retail gasoline markets

Carlos Hurtado and Julia González

Energy Economics, 2024, vol. 133, issue C

Abstract: This paper characterizes fueling stations' pricing strategies to study price differentials within retail gasoline markets. We use a unique dataset with stations' locations and daily gasoline prices in the major cities of the continental U.S. to classify cycler and non-cycler stations. We exploit station-level variability in pricing behavior within retail gasoline markets to show that cyclers charge about 3.5¢ lower gasoline prices than non-cyclers, on average. Additionally, we confirm an almost biweekly duration of the station-level cycling behavior. Finally, we provide evidence of the relationship between consumer search and the intra-market pricing strategy heterogeneity.

Keywords: Retail gasoline markets; Firm strategy; Edgeworth cycles (search for similar items in EconPapers)
JEL-codes: D22 L11 L81 Q35 R32 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002093

DOI: 10.1016/j.eneco.2024.107501

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