Gasoline Pricing in the Country and the City

David P. Byrne ()
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David P. Byrne: The University of Melbourne

Review of Industrial Organization, 2019, vol. 55, issue 2, No 2, 209-235

Abstract: Abstract In many markets, prices adjust quickly when costs rise, yet adjust sluggishly when costs fall. Such asymmetric pricing has received particular attention in retail gasoline where larger asymmetry has been related to greater market power. Using novel data from urban and rural gasoline markets, I document new evidence on this relationship by providing the first estimates of asymmetric pricing from rural towns. I find substantial asymmetry in these markets, show that local market concentration is positively related to asymmetry, and highlight the potential role of role collusion in generating these patterns.

Keywords: Asymmetric pricing; Cost-based pricing; Retail gasoline; Sticky pricing (search for similar items in EconPapers)
JEL-codes: D22 L11 L9 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11151-018-9660-x

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