The Shape and Frequency of Edgeworth Price Cycles in an Australian Retail Gasoline Market

39 Pages Posted: 26 Feb 2010

See all articles by Harry Bloch

Harry Bloch

Curtin University of Technology - Curtin Business School - School of Economics and Finance

Nick Wills-Johnson

DBP

Date Written: February 24, 2010

Abstract

Gasoline prices in many markets follow a saw-toothed pattern known as an Edgeworth Cycle. Lewis (2009) introduces a novel way of measuring the shape of the cycle, the median change in price, and regresses this against a number of explanatory variables in US markets. Here, we undertake a similar regression analysis, but using data from Perth, Australia, and with a novel measure of market structure as a regressor. We also explore a novel measure, based on spectral analysis, of the use of cycles in a mixed strategy, and the factors which drive this use.

Keywords: Edgeworth Cycles, retail gasoline

JEL Classification: C65, L13, L81

Suggested Citation

Bloch, Harry and Wills-Johnson, Nick, The Shape and Frequency of Edgeworth Price Cycles in an Australian Retail Gasoline Market (February 24, 2010). Available at SSRN: https://ssrn.com/abstract=1558747 or http://dx.doi.org/10.2139/ssrn.1558747

Harry Bloch

Curtin University of Technology - Curtin Business School - School of Economics and Finance ( email )

Curtin University
GPO Box U 1987
Perth, 6845
Australia
+61 8 9266 2035 (Phone)
+61 8 9266 3026 (Fax)

Nick Wills-Johnson (Contact Author)

DBP ( email )

PO Box Z5267
St Georges Terrace
Perth, 6831
Australia

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