Gasoline Price Cycles Under Discrete Time Pricing

Nicolas De Roos, Hajime Katayama

研究成果: Article

12 引用 (Scopus)

抄録

We characterise petrol pricing dynamics in an unusual policy environment. A timing restriction in the Western Australian market imposes discrete time pricing on petrol retailers, enabling us to observe the exact timing of price changes. We employ a Markov-switching regression model, finding the existence of Edgeworth price cycles of a similar nature to those recently observed in some other retail petrol markets. Cycles are frequent, asymmetric and of substantial amplitude. Importantly, firms change prices almost every period, limiting the relevance of the leading theory of Edgeworth cycles due to Maskin and Tirole (). We also discuss episodes of disruption and evolution of the price cycle.

元の言語English
ページ(範囲)175-193
ページ数19
ジャーナルEconomic Record
89
発行部数285
DOI
出版物ステータスPublished - 2013 6

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Gasoline prices
Pricing
Discrete-time
Price changes
Retailers
Switching regression models
Retail market
Markov switching
Dynamic pricing
Disruption

ASJC Scopus subject areas

  • Economics and Econometrics

これを引用

Gasoline Price Cycles Under Discrete Time Pricing. / De Roos, Nicolas; Katayama, Hajime.

:: Economic Record, 巻 89, 番号 285, 06.2013, p. 175-193.

研究成果: Article

De Roos, Nicolas ; Katayama, Hajime. / Gasoline Price Cycles Under Discrete Time Pricing. :: Economic Record. 2013 ; 巻 89, 番号 285. pp. 175-193.
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