Gasoline price cycle drivers: An Australian case study
MetadataShow full item record
In many retail gasoline markets, prices follow a saw-toothed cycle first posited by Edgeworth (1925) and formalised by Maskin & Tirole (1988). A growing literature explores driving factors behind such cycles, most particularly in Canada and the US. This paper explores price cycles in a retail gasoline market in Australia with a unique regulatory environment that provides a census of data. We make use of a threshold regression model, and pay particular attention to local market effects and market structure. Both are novel in the study of retail petroleum prices.
Showing items related by title, author, creator and subject.
Bloch, Harry; Wills-Johnson, Nick (2010)Maskin & Tirole (1998) formalise Edgeworth's (1925) model of a dynamic equilibrium between two players where prices increase sharply and decrease slowly; the Edgeworth Cycle. Here, we present an application of the model, ...
Wills-Johnson, Nick (2010)This thesis examines the behaviour of retail petroleum markets, with a case study examining prices in Perth, Australia. The aim of the thesis is two-fold. Firstly, it aims to extend the Edgeworth Cycles literature by ...
Bloch, Harry; Wills-Johnson, Nick (2010)The structure of a gasoline market can be an important element in the pricing choices of its participants. However, structure is often measured only indirectly by, for example, the number of independent sellers, or by ...