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Gasoline Price Cycle Drivers: An Australian Case Study

39 Pages Posted: 26 Feb 2010  

Harry Bloch

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

Nick Wills-Johnson

DBP

Date Written: February 24, 2010

Abstract

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.

Keywords: Edgeworth Cycles, retail gasoline

JEL Classification: C65, L13, L81

Suggested Citation

Bloch, Harry and Wills-Johnson, Nick, Gasoline Price Cycle Drivers: An Australian Case Study (February 24, 2010). Available at SSRN: https://ssrn.com/abstract=1558766 or http://dx.doi.org/10.2139/ssrn.1558766

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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