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Characteristics, causes, and price effects: Empirical evidence of intraday Edgeworth cycles

Manuel Siekmann

No 252, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: Edgeworth cycles represent the leading concept to explain observed pricing patterns on retail gasoline markets and have been subject to numerous empirical investigations on an interday level. In this paper, I present unique evidence of the presence, causes, and price effects of intraday Edgeworth-type cycles for an entire OECD country, using high-frequency price data from German gasoline stations. I find vast evidence of intraday cycles across municipalities in Germany. Cycle asymmetry and intensity is stronger in more concentrated markets and decreases with a higher share of non-major brands. My analysis suggests that intraday cycles are a sign of competition with a price decreasing effect during evening hours, where consumers conscious of their purchase timing can benefit most.

Keywords: Gasoline Markets; Fuel Prices; Edgeworth Cycles; Intraday Pricing (search for similar items in EconPapers)
JEL-codes: L11 L71 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ene and nep-mst
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:252

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