TY - JOUR
T1 - Edgeworth price cycles
T2 - Evidence from the toronto retail gasoline market
AU - Noel, Michael D.
N1 - Copyright:
Copyright 2007 Elsevier B.V., All rights reserved.
PY - 2007/3
Y1 - 2007/3
N2 - I exploit a new station-level, twelve-hourly price dataset to examine the strong retail price cycles in the Toronto gasoline market. The cycles appear similar to theoretical Edgeworth Cycles: strongly asymmetric, tall, rapid, and highly synchronous across stations. I test a series of predictions made by the theory about how firm behaviors would differentially evolve over the path of a cycle. The evidence is consistent with the existence of Edgeworth Cycles and inconsistent with competing hypotheses. While the cycles are an interesting phenomenon for study in their own right, the evidence has important policy and welfare implications.
AB - I exploit a new station-level, twelve-hourly price dataset to examine the strong retail price cycles in the Toronto gasoline market. The cycles appear similar to theoretical Edgeworth Cycles: strongly asymmetric, tall, rapid, and highly synchronous across stations. I test a series of predictions made by the theory about how firm behaviors would differentially evolve over the path of a cycle. The evidence is consistent with the existence of Edgeworth Cycles and inconsistent with competing hypotheses. While the cycles are an interesting phenomenon for study in their own right, the evidence has important policy and welfare implications.
UR - http://www.scopus.com/inward/record.url?scp=34147097854&partnerID=8YFLogxK
U2 - 10.1111/j.1467-6451.2007.00303.x
DO - 10.1111/j.1467-6451.2007.00303.x
M3 - Article
AN - SCOPUS:34147097854
VL - 55
SP - 69
EP - 92
JO - Journal of Industrial Economics
JF - Journal of Industrial Economics
SN - 0022-1821
IS - 1
ER -